REVISION OF 1923 


STATE OF MICHIGAN 


LAWS RELATING TO 

INSURANCE 


COMPILED UNDER THE SUPERVISION OP 

CHARLES J. DeLAND, 

SECRETARY OF STATE 



BY AUTHORITY 


Lansing, Michigan 
FORT WAYNE PRINTING CO. 
State Printers 
1923 

9 - 19 - 23—2500 














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V 


REVISION OF 1923 



STATE OF MICHIGAN 


LAWS RELATING TO 


INSURANCE 


COMPILED UNDER THE SUPERVISION OF 


CHARLES J. DeLAND, 


SECRETARY OF STATE 



BY AUTHORITY 


Lansing, Michigan 
FORT WAYNE PRINTING CO. 
State Printers 
1923 








W^z\ 

.IAs 


1 library of "congress 
received 

JAN 9 1C24 

DOCUMENTS DIVISION 



CONTENTS. 


THE INSURANCE CODE. 

Part 1—The Insurance Department. 

Sections. 

Chapter I—Organization, etc., of the department. 1-6 

Chapter II—Reports, examinations, fees, etc. 7-21 

Chapter III—Liquidation and dissolution of domestic insurance companies 22-29 
Chapter IV—Rating bureaus ... 30-45' 

Part 2—General Regulations. 

Chapter I—Incorporation of companies and corporate management. 46-66 

Chapter II—Admission of foreign insurance companies. 67-87 

Chapter III—Insurance agents and adjusters . 88-109 

Chapter IV—Miscellaneous .110-129 

Part 3—Life and Casualty Insurance. 

Chapter I—Regulations ...130-145 

Chapter II—Life and casualty insurance contracts .146-176 

Chapter III—Co-operative, casualty, etc., insurance .177-189 

Chapter IV—Fraternal beneficiary societies .190-225 

Part I—Eire, Marine, Automobile and Other Insurance. 

Chapter I—Incorporation of companies .226-241 

Chapter II—Provisions relating to contracts of fire insurance, etc.242-258 

Chapter III—Automobile insurance .259-266 

Chapter IV—Mutual fire, cyclone and hail companies . .267-289 

Part 5—Special Forms of Insurance. 

Chapter I—Employer’s liability ...290-302 

Chapter II—Reciprocal insurance .303-314 

Chapter III—General mutual law and repeal schedule.315-338 

Miscellaneous Statutes. 

Surety company bonds authorized .339-348 

Whole family protection ..349-354 

Limit of single hazard of mutual fire, etc., companies.355-358 

Providing fire protection for townships... .359-361 

Approval of sprinkler heads .. .362-366 

Actions . 367 

Service of process .368-370 

Levy of attachment, etc., upon corporate shares .371-376 

Garnishment of corporations .377-382 

Sale, etc., of fraudulent stock .383-386 

Requiring insurance in particular companies ..387-389 

Prohibiting untrue, false or malicious statements . 390 

Killing of insured live stock . 391 

Burning of insured property . 392 



































4 


CONTENTS. 


Sections. 


Forgery .393-394 

Insurance of county buildings .395-396 

Insurance on state property .397-406 

Fees, etc., of corporations .407-418 

Computation of taxable corporate property . 419 

Transcripts without fee to soldiers, etc .'. 420 

Certificate of death, prima facie evidence . 421 

Appropriation for department of insurance .422-424 

Index. 


. NOTE.—The numbers in parentheses ( ), are compiler’s sections and are consecutive 
throughout the book. The notes used refer to the compiler’s sections. Section numbers 
of the compiled laws of 1915 are indicated by the section mark §. Annotated with supreme 
court decisions to and including the 221st Michigan Report. The decisions on former 
laws superseded by the code, have been assigned as near as possible to the text involved, 
in whole or in part. The character / is used in citing Michigan cases to avoid the repetition 
of Michigan. 











INSURANCE LAWS 


An Act to revise, consolidate and classify the laws of the state of 
Michigan relating to the insurance and surety business; to regu¬ 
late the incorporation of domestic insurance and surety companies 
and associations and the admission of foreign companies; and to 
provide for the departmental supervision and regulation of the 
insurance and surety business within this state. 

[Act 256, P. A. 1917.] 

The People of the State of Michigan enact: 


PART ONE.—THE INSURANCE DEPARTMENT. 

CHAPTER I.—ORGANIZATION, ET CETERA, OF THE 
DEPARTMENT. 

(1) Section 1. There is hereby established a separate Department 
and distinct state department which shall be especially established, 
charged with the execution of the laws in relation to insur¬ 
ance and surety business and to perform such other duties 

as may be required by law: Provided, however, That the proviso, 
said department so established shall be deemed and consid¬ 
ered as in continuation of and the successor to the insurance 
bureau established by act number one hundred eight of the 
session laws of eighteen hundred seventy-one, and other acts 
amending and supplementing the same. The chief officer of commissioner 
the said department shall be known as the commissioner of of ins urance. 
insurance. He shall be a citizen of this state, and shall have to be citizen 
his office at the seat of government, and shall personally super- of state « etc - 
intend the duties of his office, and shall not be a stock¬ 
holder or directly or indirectly connected with the man¬ 
agement of affairs of any insurance company. He shall be Appointment, 
appointed by the governor by and with the consent of the sen¬ 
ate, and shall hold his office until his successor is appointed Term of 
and qualified. offlce - 

Am. 1919. Act 15; 1921, Act 391. 

It is within the power of the legislature to provide for an examination into 
the affairs of existing insurance companies.—People v. State Ins. Co., 19 / 397. 

(2) Sec. 2. The commissioner of insurance shall receive salary, 
an annual salary of three thousand five hundred dollars pay¬ 
able as other state officers are paid under the accounting laws 

of the state. Within fifteen days from the time of notice of oath of 
and subscribe the constitutional oath of office and file the offlce - 

TITLE: Plaintiff’s contention that Act No. 256, P. A. 1917, is unconstitutional 
because its title does not indicate the purpose of abrogating the constitutional 
right of trial by jury is without force, since it is the contract of insurance, and 
not the statute, which abrogates said right.—Innis v. Fireman’s Fund Insurance 
Co., 218 / 253. 




6 


STATE OF MICHIGAN. 


Bond. 


Vacancy. 


Seal, approval 
of, etc. 


Assignment 
of office 
rooms. 


Deputies, ex¬ 
aminers, etc. 


Proviso. 

Oath of 

office. 

Deputies. 


Salaries. 


Chief clerk 
and chief ex¬ 
aminer. 

Salaries. 


Assistant 
actuaries and 
examiners. 

Assignment 
to grades. 


same in the office of the secretary of state, and shall also 
his appointment the commissioner of insurance shall take 
within the same period give to the people of the state of 
Michigan a bond in the penal sum of fifty thousand dollars, 
with sureties to be approved by the auditor general, condi¬ 
tioned for the faithful discharge of the duties of his office. 
Whenever a vacancy shall occur in said office of commis¬ 
sioner by reason of death, removal, or otherwise, the governor 
shall fill such vacancy by appointment, by and with the ad¬ 
vice and consent of the senate, if in session. 

For an act making appropriations for personal services and expenses of the 
department, see secs. 422-24. 

(3) Sec. 3. The said commissioner, with the approval 
of the governor, shall devise a seal, with suitable inscriptions, 
for his office, a description of which, with certificate of the 
approval of the governor, shall be filed in the office of the 
secretary of state, with an impression thereof, which seal 
shall thereupon be and become the seal of office of the com¬ 
missioner of insurance and the same may be renewed when¬ 
ever necessary. 

(4) Sec. 4. The board of state auditors shall assign to 
the said insurance department at Lansing suitable rooms for 
the conducting of the business of the said department, the 
necessary expense of which shall be audited by the said board 
on the certificate of the commissioner and paid on the war¬ 
rant of the auditor general. 

(5) Sec. 5. The said commissioner of insurance may ap¬ 
point deputies, examiners, clerks, actuaries, and other neces¬ 
sary assistants, and revoke such appointments at pleasure. 
The deputies so appointed shall be known as “first deputy” 
and “second deputy”: Provided, however, That the said 
second deputy shall have the qualifications of an actuary. 
The said deputies shall subscribe and file the constitutional 
oath of office. Either of said deputies may perform any duty 
or act devolving upon the commissioner of insurance, during 
his absence from the department, and the commissioner may 
assign either of said deputies to take charge of said depart¬ 
ment during such absence. The first deputy shall receive an 
annual salary of not to exceed three thousand dollars and 
the second deputy an annual salary of not to exceed two 
thousand five hundred dollars, in the discretion of the com¬ 
missioner. The said commissioner may appoint and employ 
a chief clerk, and designate a chief examiner. The chief ex¬ 
aminer shall receive an annual salary of two thousand dol¬ 
lars; the chief clerk not to exceed fifteen hundred dollars per 
annum; and the compensation of assistant actuaries and as¬ 
sistant examiners shall be graded as follows: Grade A, 
grade B, grade C, grade D, grade E. All persons newly 
appointed as assistant actuary or assistant examiner shall be 
assigned to grade E, and thereafter shall be promoted for 
efficient service in a manner as shall be provided by the com- 



LAWS RELATING TO INSURANCE. 


7 


missioner of insurance, but no person shall be appointed out 
of any such grade until he or she shall have served therein 
six months. The compensation for the respective grades compensa- 
sliall be as follows: Grade E, not to exceed one thousand tlon * 
live hundred dollars per annum; grade D, one thousand six 
hundred dollars per annum; grade C, one thousand seven 

hundred dollars per annum; grade B, one thousand eight 

hundred dollars per annum; grade A, one thousand nine 

hundred dollars per annum. The chief clerk shall discharge 

such duties as may be assigned to him. Such other clerks cierks, how 
as the commissioner may require shall be subject to the re¬ 
graded salary law of the state, and shall be paid according 
to the accounting laws thereof. 

(6) Sec. 6 . The necessary traveling and other necessary Expenses, 
and actual expenses of the commissioner of insurance, his how pa,d ’ etc ' 
deputies, examiners, actuaries, or other employes, in dis¬ 
charging the duties imposed by this act, shall in all cases be 
allowed and audited by the board of state auditors, upon the 
approval of the commissioner of insurance, in accordance 
with the accounting laAvs of this state; and all such actual 
and necessary expenses incurred in connection with the ex¬ 
amination or other investigation of any insurance company 
made pursuant to this act shall be certified by the commis¬ 
sioner of insurance, together with a statement of the number 
of days spent by each of such deputies, assistants, and em¬ 
ployes or the commissioner himself, upon such examination 
or investigation, to the board of state auditors, who shrill, if 
correct, approve the same, and such expenses shall be paid 
to the persons by whom they Avere incurred, upon the Avarrant 
of the auditor general out of the general fund of the state. 

It shall be the duty of the auditor general to thereupon pre- statement of, 
pare and present to the company so examined or investigated, ^ 

a statement of such expenses and a per diem equal to the prepare, 
daily portion of the salaries paid to such persons engaged 
upon such examination or investigation, for the number of 
days so certified by the commissioner of insurance, and such 
company shall, upon receiving such statement, pay to the 
auditor general the amount stated therein to be by him paid 
into the general fund of the state: Provided, however, That Proviso, 
if by any provision of this act a fixed sum per diem for such 
examination or investigation is required, the per diem shall 
be as fixed in such provision in lieu of that Avhich is herein- 
above provided for. 

See Act 98, P. A. 1919, establishing budget system (now under supervision of 
state administrative board). 


CHAPTER II.—REPORTS, EXAMINATIONS, FEES, ET CETERA. 

(7) Section 1. All fees and charges for official services Fees,^disposi- 
performed by said commissioner, his deputies or employes, 
shall, Avhen collected, be forthwith turned over to the state 
treasurer and his receipt taken therefor. The said commis¬ 
sioner of insurance shall not retain as perquisites any fees 




8 


STATE OF MICHIGAN. 


or any moneys received by him directly or indirectly, for 
Extra the performance of duties connected with his office. No 

insurance corporation or any officer, director, or agent there¬ 
of shall directly or indirectly, pay by way of gift, credit, loan 
or any other pretense whatsoever, any sum of money or other 
valuable thing to the commissioner of insurance, his deputies 
or any clerk or employe of the insurance department for 
extra service; and it shall be unlawful for the commissioner 
of insurance, his deputies or any clerk or employe of the 
insurance department to accept any such payment for extra 
service except such fees as may be specifically authorized by 
law to be paid to the commissioner of insurance to be covered 
into the state treasury. 

See Act 98, P. A. 1919, establishing budget system (now under supervision of 
state administrative board). 


Examination 
of foreign 
companies. 


Expenses. 


Special 

examiner. 

Per diem 
compensation. 


Annual 
report to 
governor. 


(8) Sec. 2. It shall be proper and lawful for the com¬ 
missioner of insurance or any person authorized by him to 
vdsit, any insurance company in other states or foreign gov¬ 
ernments for the examination of its affairs, the expenses in 
all cases to be paid by said insurance companies. The insur¬ 
ance commissioner or any person authorized by him to make 
such visit and examination shall charge a sum not exceeding 
ten dollars per day for his services in addition to his ex¬ 
penses. And whenever it shall be necessary for the commis¬ 
sioner of insurance to employ or hire any special examiner, 
the per diem compensation provided by law to be paid by the 
insurance corporation to such special examiner shall be paid 
out of the general fund of the state and collected from such 
insurance corporation for the benefit of the state in the man¬ 
ner provided by section six of the preceding chapter of this 
act. 

(9) Sec. 3. The commissioner of insurance shall com¬ 
pile a report of the conduct of his office annually on or before 
the last day of June in each year, which report shall be 
printed for public information and use in such number as the 
commissioner may deem advisable, not to exceed fifteen hun¬ 
dred copies. Such report shall be addressed to the governor 
and be for his information primarily. 


See section 4, Act 71, P. A. 1919, providing for annual financial report required 
under the uniform accounting law. Sec. 6 of Act 2, P. A. of 1921, (regular ses¬ 
sion), gives the state administrative board control over system of state account¬ 
ing. 


meS 1 when^ (10) Sec. 4. The annual statement required by this act 
filed. to be filed in the office of the commissioner of insurance by 

any insurance company doing business in this state, shall, 
unless otherwise provided for, be hereafter filed on or before 
the fifteenth day of February of the year following that 
Fee. covered by the statement; and a filing fee of twenty-five dol¬ 

lars shall be paid by all such insurance companies which are 
organized outside this state, subject to the retaliatory pro¬ 
visions of section twelve of this chapter, for any greater 
charge for filing such statements. 

Am. 1923, Act 171. 



LAWS RELATING TO INSURANCE. 


9 


Sec. 1, chap, 2, part v, of Act 84, P. A. of 1921 (corporation code), requiring the 
filing of annual and other corporation reports, expressly exempts insurance 
corporations filing articles or reports with the insurance department, etc. 

Sec. 7 of Act 85, P. A. of 1921, requires domestic insurance corporations, etc., 
to file an annual report with the secretary of state for year ending June 30, 
upon forms prescribed by the secretary of state. See sec. 414. 

(11) Sec. 5. The commissioner ’of insurance shall, on or company 
before March first of each year, issue certificates of authority atJthorUy. ° f 
to such companies as have filed their annual statements and 

have otherwise complied with the provisions of this act, 
which certificate shall bear date as of March first and shall 
expire on the last day of February following unless sooner 
revoked: Provided, That any insurance company or organi- Proviso, 
zation that is required by this act to file its annual state¬ 
ment at any other day than that mentioned herein and whose 
annual certificate of authority is required to be as of some 
other date than March first, shall continue to file such state¬ 
ment and to receive such certificate of authority as may be 
exceptionally provided for. 

(12) Sec. 6. The commissioner of insurance in person Examination 
or by any of his authorized deputies or examiners, shall have of companies, 
authority to examine any or all of the books, records, docu¬ 
ments and papers of any insurance corporation at any time 

after its articles of association have been executed and filed, 
or after it has been admitted to do business in this state, 
and upon such an examination, he, his deputy or any examiner 
authorized by him, may examine under oath the officers or 
agents of such corporation or all persons deemed to have 
material information regarding such company’s property or 
business. Such corporation, its officers and agents, shall corporation 
produce its books and all papers in its or their possession to ald in - 
relating to its business or affairs, and any other person may 
be required to produce any books or papers deemed to be 
relevant to the examination for the inspection of the com¬ 
missioner of insurance, his deputy or examiners, whenever 
required, and the officers or agents of such corporation shall 
facilitate such examination and aid in making the same so 
far as it is in their power to do so. Such deputy or examin- Report on 
ers shall make a full and true report, and furnish the com- examination, 
pany a copy thereof, of every examination which shall com¬ 
prise only facts appearing on the books, records or documents 
of such corporation, or ascertained from sworn testimony of 
its officers or agents or other persons examined under oath, 
concerning its affairs and such conclusions and recommenda¬ 
tions as may be reasonably warranted from such facts so 
disclosed. The commissioner of insurance shall grant a hear- when hear¬ 
ing to any corporation examined, upon its request, before ing s ranted - 
filing such report and may withhold any such record from 
public inspection for such time as he may deem proper. He Report, may 
may, if he deem it for the interest of the public to do so, publ,sh - 
after such hearing, publish any such report or the result of 
any such examination as contained therein, in one or more 
newspapers of general circulation in the state. 

Power of legislature to authorize examination, see People v. State Ins. Co., 

19 / 397. 



10 


STATE OF MICHIGAN. 


Annual 

statements. 


Forms, who 
to prepare, 
etc. 


Failure to 
file, etc. 


Penalty. 


Foreign 

companies. 


Revocation. 


Annual state¬ 
ments, forms 
prepared. 


Violation 
reported to 
attorney 
general. 


(13) Sec. 7. It shall be the duty of each and every insur¬ 
ance company, foreign or domestic, transacting business 
within this state, annually, on or before February fifteenth, 
to prepare under oath, and deposit with the commissioner 
of insurance a statement concerning its affairs upon such 
form and including such information as shall be prescribed 
by the commissioner of insurance. If [it] shall be the duty 
of the commissioner to prepare such forms of statements, as 
shall be suitable and adaptable to each kind or class of in¬ 
surance authorized by this act. The commissioner of insur¬ 
ance is hereby authorized and directed to include in such 
forms, requisitions for information upon any and all impor¬ 
tant elements of such business, including any matter, condi¬ 
tion or requirement regulated by this act. 

Mich. Mut. Ins. Co. v. Com. Council, 133 / 411. 

(14) Sec. 8. The commissioner of insurance , is hereby 
authorized and empowered to address any inquiries to any 
insurance company, in relation to its doings or conditions, 
or any matter connected with its transactions; it shall be the 
duty of any company so addressed to promptly reply in writ¬ 
ing to any such inquiries. Every insurance company organ¬ 
ized under any law of this state failing to make and deposit 
the annual statement required in the preceding section, or 
failing to reply to any inquiry of the said commissioner of 
insurance, shall be subject to a penalty of five hundred dol¬ 
lars and an additional five hundred dollars for every month 
that such company shall continue thereafter to transact any 
business of insurance. Every insurance company organized 
without this state, and doing business herein, failing to make 
and deposit such annual statements, or to make satisfactory 
replies to such inquiries as may be put to it, concerning its 
affairs, by the commissioner of insurance, shall be subject 
to the like penalties and to a revocation of its authority to 
do business in this state. 

It is within the power of the legislature to provide for an examination into 
the affairs of insurance companies doing business in this state.—People v. State 
Ins. Co., 19 / 392. As to revocation of certificate, see Life Ins. Co. v. Ins. Com'r., 
128 / 85; Am. Health & Accident Ins. Co., 154 / 193. 

(15) Sec. 9. It shall be the duty of the commissioner of 
insurance to prepare and furnish to each of the insurance 
companies, doing business in this state, printed forms of the 
annual statements required by this act, which statements 
shall be printed at the expense of the state. It shall be the 
duty of the commissioner of insurance to cause the informa¬ 
tion contained in the statements required by this act to be 
arranged in convenient form, and published in the annual 
report of the insurance department. 

(16) Sec. 10. If it shall appear from any examination 
made by the commissioner of insurance or from any report 
made to him pursuant to this chapter or any other provision 
of this act, that any provision of this act or of any laws of 
the state have been violated, the commissioner of insurance 




LAWS RELATING TO INSURANCE. 


11 


shall immediately report such violation to the attorney gen¬ 
eral in writing and the attorney general shall take such ac¬ 
tion thereon as the facts warrant. 

(17) Sec. 11. Whenever the commissioner of insurance Examination 
shall have reason to suspect the correctness of any annual of compan,es * 
statement, or that the affairs of the company making the 

same are in an unsound condition, it shall be his duty to 
cause an examination to be made into the books, papers, and 
securities of such company, and if in his opinion the condi¬ 
tion of the company is such as to render it improper that 
it should continue to issue policies in this state, he shall 
have the power to revoke the license of such company; and Revocation of 
whenever he shall deem it for the public interest so to do, llcense * 
he shall publish the result of such investigation in such news¬ 
paper as he shall select, or if the company is one organized 
under the laws of this state, then in some newspaper pub¬ 
lished in the county where the principal business office of the 
company is located. The securities deposited with the state Securities, 
treasurer shall remain in his hands, notwithstanding the com- J£ thdrawal 
pany may cease or be prohibited to do business within the 
state, and shall only be withdrawn on the order of the su¬ 
preme court, or when the officers of the company shall show 
by affidavit to the satisfaction of the commissioner of insur¬ 
ance and state treasurer that the risks for which the com¬ 
pany remains liable, and for the security of which the same 
are held, are less than the securities so deposited, in which 
case the company may be permitted to withdraw the surplus 
securities over and above the risks which then remain. 

The legislature may provide for an examination into the affairs of insurance 
companies doing business in this state and may enforce such examination by 
mandamus.—People v. State Ins. Co., 19 / 392. The commissioner can revoke 
a license only upon the investigation and proceedings, and in the particular cases, 
fixed by the statutes.—Nat’l Life Ins. Co. v. Commissioner, 25 / 321. After the 
commissioner has revoked the authority of a foreign insurance company, it 
cannot recover upon premium notes, upon which, by the terms of its policies, 
payments fall due in advance.—American Ins. Co. v. Stoy, 41 / 385. The state 
treasurer will not be required to permit the withdrawal of securities, when the 
condition of a company’s affairs are such as to render further business imprudent, 
and when the death claims and policies outstanding approximate the deposit; 
nor unless such application therefor, as the statute contemplates, has been made. 

—Imperial Life Ins. Co. v. State Treasurer, 95 / 513. 

(18) Sec. 12. Whenever, by any law in force without Retaliatory 
this state, an insurance corporation of this state or agent provlslons * 
thereof is required to make any deposit of securities there- Deposit, 
under for the protection of policy holders or otherwise, or 

to make payment for taxes, fines, penalties, certificates of 
authority, valuation of policies, license fees, or otherwise, 
or any special burden or other burden is imposed, greater 
than is required by the laws of this state for similar foreign 
corporations or their agents, the insurance companies of such 
states or governments shall be and they are hereby required 
ns a condition precedent to their transacting business in this 
state, to make a like deposit for like purposes with the state 
treasurer of this state, and to pay to the commissioner of in- Payment of 
surance for taxes, fines, penalties, certificates of authority, e tc. ’ 
valuation of policies, license fees and otherwise a rate equal 
to such charges and payments imposed by the laws of such 



12 


STATE OF MICHIGAN. 


Revocation of 
certificate. 


Proviso. 


Fees. 


Disposition 
of moneys. 


Proviso. 


Amortization 
of bonds, etc. 


Proviso. 


Further provi¬ 
so, method of 
calculation. 


other state upon similar corporations of this state and the 
agents thereof. In the case of fire department or salvage 
corps taxes or other local taxes the rate shall be computed 
by the commissioner of insurance by dividing the total of 
such pa 3 r ments made by insurance corporations of this state 
in such state by the gross premium paid by such corporations 
in such state less return premiums. Any corporation refus¬ 
ing for thirty days to make payment of such fees or taxes 
as above required shall have its certificate of authority re¬ 
voked by the commissioner of insurance: Provided, That 
corporations organized under the laws of any state or coun¬ 
try, other than these United States, shall, as to the provisions 
of this act, be considered corporations of that state wherein 
their general deposit for the benefit of their policy holders is 
made. 

(19) Sec. 13. For making copies of any papers in his 
office, the commissioner of insurance shall charge at the rate 
of twenty cents per folio, and for attaching his certificate 
thereto twenty-five cents. 

Section 13729, C. L. 1915, defines a folio as follows: The term “folio,” when 
used as a measure for computing fees or compensation, shall be construed to 
mean one hundred words, counting every figure necessarily used, as a word: 
and any portion of a folio, when in the whole draft or paper there shall not be a 
complete folio and when there shall be any excess over the last folio, shall be 
computed as a folio. 

(20) Sec. 14. The moneys collected under this act shall 
be turned over by the commissioner of insurance to the state 
treasurer and placed iii a fund which is hereby reappropriat¬ 
ed and front which shall be paid the expenses of the insur¬ 
ance department, for which an appropriation is not other¬ 
wise provided: Provided, That any balance remaining in 
said fund at the close of business December thirty-first of 
each year shall be transferred by the state treasurer to the 
general fund of this state. 

See section 8, Act 98. P. A. 1919, as to the disposition of income of depart¬ 
ments under the budget system. 

See also sections 422-24. (Act 268, P. A. 1923) making appropriations for the 
department of insurance for the years ending June 30, 1924 and 1925. 

(21) Sec. 15. All bonds or other evidences of debt 
having a fixed term and rate held by any life insurance 
company, assessment life association or fraternal beneficiary 
association authorized to do business in this state may, if 
amply secured and not in default as to principal and inter¬ 
est, be valued as follows: If purchased at par, at the par 
value; if purchased above or below par, on the basis of the 
purchase price adjusted so as to bring the value to par at 
maturity and so as to yield in the meantime the effective 
rate of interest at which the purchase was made: Provided, 
That the purchase price shall in no case be taken at a higher 
figure than the actual market value at the time of pur¬ 
chase: And provided further, That the commissioner of in¬ 
surance shall have full discretion in determining the method 
of calculating values according to the foregoing rule. Any 
fraternal beneficiary association authorized to do business 




LAWS RELATING TO INSURANCE. 


13 


in this state may credit in its valuation report, as contingent 
assets, or charge as contingent liabilities, the difference be¬ 
tween the present value of the actual interest rate earned and 
the present value of the assumed rate under the standard of 
valuation used, from the date of such valuation to the ma¬ 
turity date of investments, or if payment date is optional, 
to such optional date, and for an average like period on all 
other mortuary or benefit funds: Provided, That the pur¬ 
chase price shall in no case be taken at a higher figure than 
the actual market value at the time of purchase: And pro¬ 
vided further, That the commissioner of insurance shall have 
full discretion in determining the method of calculating 
values according to the foregoing rule. 

Added 1921, Act 226. 


CHAPTER III.—LIQUIDATION AND DISSOLUTION OF DOMESTIC 
INSURANCE COMPANIES. 

(22) Section 1. This chapter shall apply to all domes¬ 
tic corporations, associations, societies and orders transact¬ 
ing an insurance business under authority of any law of this 
state, including all corporations, associations, fraternal bene¬ 
ficiary societies and orders which are subject to examination 
by the commissioner of insurance, or which are doing or at¬ 
tempting to do or representing that they are doing the busi¬ 
ness of insurance in this state, or which are in process of 
organization intending to do such business therein, or to be¬ 
come incorporated under any law of this state for the trans¬ 
action of an insurance business. 

(23) Sec. 2. Whenever any such corporation, 

(a) Is insolvent; or 

(b) Has refused to submit its books, papers, accounts or 
affairs to the reasonable inspection of the commissioner of 
insurance, or his deputy or examiner; or 

(c) Has neglected or refused to observe an order of the 
commissioner of insurance to make good any deficiency within 
the time prescribed by the commissioner, whenever its capital 
shall become impaired exceeding fifteen per centum thereof, 
if it be a stock corporation, or its reserve, if it be a mutual 
corporation, shall have become impaired; or 

(d) Has by contract of reinsurance or otherwise, trans¬ 
ferred or attempted to transfer substantially its entire prop¬ 
erty or business, or entered into any transaction the effect 
of which is to merge substantially its entire property or 
business in the property or business of another corporation, 
association, society or order, without first having obtained 
the written approval of the commissioner; or 

(e) Is found, after an examination, to be in such condi¬ 
tion that its further transaction of business will be hazardous 
to its policy-holders, or to its creditors, or to the public; or 

(f) Has wilfully violated its charter or any law of the 
state; 


Proviso. 


Further 

proviso. 


Chapter to 
apply. 


Dissolution, 
when com¬ 
missioner 
may ask for. 




14 


STATE OF MICHIGAN. 


Application 
for order. 


Injunction 
may issue. 


Return of 
order. 


Liquidation, 
order of. 


Filing. 


What to pro¬ 
vide. 


Special 
deputy com¬ 
missioners. 


(g) Whenever any officer thereof has refused to be exam¬ 
ined under oath touching its affairs; or 

(h) If such corporation be found, after examination, to 
be in such condition that it could not meet the requirements 
for incorporation and authorization; 

The commissioner of insurance may, the attorney general 
representing him, apply to the circuit court in the judicial 
circuit in which the principal office of such corporation is 
located, for an order directing such corporation to show 
cause why the commissioner should not take possession of its 
property and conduct its business, or for such other relief 
as the nature of the case and the interests of its policy-hold¬ 
ers, creditors, stockholders, or the public may require. 

Of the voluntary dissolution of corporations, see §13563 et seq.; also subd. 
2, chap, iv, Act 84, P. A. 1921. 

(24) Sec. 3. On such application, or at any time there¬ 
after, such court may in its discretion, issue an injunction 
restraining such corporation from the transaction of its 
business or the disposition of its property until the further 
order of the court. • On the return of such order to show 
cause, and after a full hearing, the court shall either deny 
the application or direct the commissioner forthwith to take 
possession of the property and conduct the business of such 
corporation and retain such possession and conduct such 
business until, on the application either of the commissioner, 
the attorney general representing him, or of such corporation, 
it shall, after a like hearing, appear to the court that the 
ground for such order directing the commissioner to take 
possession has been removed and that the corporation can 
properly resume possession of its property and the conduct 
of its business. 

(25) Sec. 4. If, on like application an order to show 
cause, and after a full hearing, the court shall order a liquida¬ 
tion of the business of such corporation, such liquidation 
shall be made by and under the direction of the commissioner 
of insurance who may deal with the property and business 
of such corporation in his own name as commissioner or in 
the name of the corporation, as the court may direct, and 
shall be vested by operation of law with title to all the 
property, contracts and rights of action of such corporation 
as of the date of the order so directing him to liquidate. The 
filing or recording of such order in any record office of the 
state, shall impart the same notice that a deed, bill of sale 
or other evidence of title duly filed or recorded by such cor¬ 
poration w r ould have imparted. The order of liquidation 
shall, unless otherwise directed by the court, provide that 
the dissolution of the corporation shall take effect upon the 
entry of such order in the office of the clerk of the county 
wherein such corporation had its principal office for the 
transaction of business. 

(26) Sec. 5. For the purposes of this chapter the com¬ 
missioner shall have power to appoint, under his hand and 



LAWS RELATING TO INSURANCE. 


15 


official seal, one or more special deputy commissioners of 
insurance as his agent or agents, and to employ such counsel, 
clerks and assistants as may by him be deemed necessary, 
and give each of such persons such power to assist him as 
he may consider wise. The compensation of such special compensa- 
deputy commissioner, counsel, clerks and assistants, and all how paid’ 
expenses of taking possession of and conducting the busi¬ 
ness of liquidating any such corporation shall be fixed by 
the commissioner, subject to the approval of the court, and 
shall, on certificate of the commissioner, be paid out of the 
funds or assets of such corporation. In any proceedings Powers, 
under this chapter the commissioner, his deputy or any 
examiner or special deputy shall have all of the powers given 
to the commissioner, by any law of this state authorizing 
the commissioner to make or cause to be made examinations 
of insurance corporations, including the power to examine 
under oath the officers and employes of such corporation, 
and to compel the production of books and papers as herein 
provided. 

(27) Sec. 6. The commissioner shall publish, in his an- Publication 
nual report, the names of the corporation so taken posses- nquidation, 
sion of, whether the same have resumed business or have been etc. 
liquidated, and such other facts as shall acquaint the policy¬ 
holders, creditors, stockholders, and the public with his pro¬ 
ceedings under this chapter; and to that end the official in 

charge of any such corporation shall file annually with the 
commissioner a report of the affairs of such corporation. 

(28) Sec. 7. The commissioner of insurance or his Powers of 
deputy or special deputy, acting under the provisions of this receiver - 
chapter in any liquidation proceedings, shall have all the 
powers of a receiver in insolvency proceedings, and may do 

and perform any act for the protection of the assets or the 
recovery of the same, and for the settlement or discharge of 
the obligations of the insurance company, that may be neces¬ 
sary or that may be directed by the court. He shall have Authority to 
the same authority to make assessments upon stockholders assess - 
or members of the company as the officers thereof are auth¬ 
orized to make under the provisions of this act, and it shall 
be his duty to make such assessments, ratably in any case 
where authorized, to any extent that may be necessary to dis¬ 
charge the whole obligations, existing at any time during 
such receivership or insolvency proceedings. He may bring Suit to en- 
suit to recover and enforce such assessments in any court of force ’ etc ' 
competent jurisdiction against the members or stockholders, 
as the case may be, or, by direction of the court having juris¬ 
diction of the liquidation, may bring such suit or suits in the 
circuit court without regard to the amount involved. Such 
receiver shall be held accountable to the circuit court of the 
county having jurisdiction for his actions in the premises. 

The authority to prescribe the liabilities of the members to be assessed relates 
to the ordinary exercises of corporate powers, while the company is solvent and 
carrying on business in the ordinary way; but the statute prescribes its own 
rule for assessments after the corporation has passed into the hands of a receiver 
and this rule cannot be changed or limited by the charter or by-laws.—Russell 



16 


STATE OF MICHIGAN. 


Petition for 
liquidation. 


Bond of com¬ 
missioner. 


v. Berry, 51 / 287 ; Macklem v. Bacon, 57 / 337. But an agreement that liability 
should be limited to the amount of the premium notes was sustained, on the 
ground that such was the understanding of all members of the company.—Mack- 
lcm v. Bacon, 57 / 337. Members of a mutual fire insurance company, if liable 
at all for assessments made by a receiver, can be made so only by the contract 
easting between them and the company, which contract is evidenced by the 
application and policy.—Wardle v. Hudson, 96 / 432. The holder of a canceled 
policy is not liable to assessment by the receiver, if he has paid all liabilities 
up to the time of cancellation.—Tolford v. Church, 66 / 431. A receiver derives 
his? authority to make assessments directly from the statute. Such assessments 
are not conclusive, but are prima facie evidence of regularity and of right to 
recover.—Wardle v. Townsend, 75 / 385. In making assessments, the receiver 
is invested with a liberal discretion, which will not be interfered with unless 
abused.—Id. The evident object of the provision for suit in the circuit court 
was to authorize the receiver to sue for sums less than $100 in the circuit court 
and to recover costs in such suits.—Bacon v. Clyne, 70 / 185; Wardle v. Town¬ 
send, 75 / 396. The statute of limitations does not begin to run against a mem¬ 
ber’s liability for an assessment, until the assessment is made.—Peake v. Fuller, 
123 / 684. 

Under the continuance of the business of the association by the receiver, he 
may be required to levy an assessment for the purpose of paying a death claim 
accruing after the/- filing of such petition, but before his appointment.—Taft v. 
Judge, 129 / 312. The discretionary action of a circuit judge in removing a 
receiver will not be reversed where it clearly appears that he did not accomplish 
what he ought to and would have accomplished had he exercised the diligence 
of a prudent man in winding up a business of his Own. — In re Angell, 131 / 345. 
A receiver will be charged with assessments lost through his want of diligence 
in learning of the death of the debtors and presenting the claims against their 
estates.—Id. When question of validity of assessment for excessiveness cannot 
be made.—'Collins v. Welch, 141 / 676. A member of a mutual fire insurance com¬ 
pany is liable to the receiver after its insolvency for an assessment of his pro¬ 
portion of the losses and expenses sustained by the company up to the time that 
he terminated his relation with it, and is not relieved by having paid the amount 
claimed by the company to be due from him at the cancellation of the policy.— 
Nichol v. Newman, 160 / 582. 

(29) Sec. 8. In any case arising under this chapter the 
commissioner of insurance may file his petition for liquida¬ 
tion or receivership in the circuit court for the county of 
Ingham, and the preliminary steps towards the appointment 
of a receiver shall be taken and heard in such circuit, and the 
circuit court of Ingham county may at any time thereafter 
transfer such case to the circuit court of the county in which 
such company may have its principal place of business, for 
such further steps and action as may be necessary in the 
premises, as in cases of change of venue. In all other re¬ 
spects proceedings under this chapter shall be conducted ac¬ 
cording to the procedure prescribed in the judicature act of 
this state. The circuit court in the first instance may re¬ 
quire the commissioner of insurance or the person acting as 
his deputy in the liquidation proceedings, to file a bond as 
in other receiverships. Such receiver shall in no case be per¬ 
mitted to increase the liabilities of any company undergoing 
liquidation excepting for the purpose of preserving its assets. 

The authority to prescribe the liabilities of the members to be assessed relates 
to the ordinary exercise of corporate powers, while the company is solvent and 
carrying on business in the ordinary way; but the statute prescribes its own 
rule for assessments after the corporation has passed into the hands of a receiver 
and this rule cannot be changed or limited by the charter or by-laws.—Russell 
v. Berry, 51 / 287; Macklem v. Bacon, 57 / 337. But an agreement that liability 
should be limited to the amount of the premium notes was sustained, on the ground 
that such was the understanding of all members of the company. — Macklem v. 
Bacon, 57 / 337. Members of a mutual fire insurance company, if liable at all for 
assessments made by a receiver, can be made so only by the contract existing be¬ 
tween them and the company, which contract is evidenced by the application and 
policy.—Wardle v. Hudson, 96 / 432. The holder of a canceled policy is not liable 
to assessment by the receiver, if he has paid all liabilities up to the time of cancel¬ 
lation.—Tolford v. Church, 66 / 431. The authority of the receiver to make 
assessments appears conclusive. The language is explicit. No exception is 
made or qualification expressed. Nor is any discretion given. The terms are 
imperative.—Russell v. Berry, 57 / 337. A receiver derives his authority to make 
assessments directly from the statute. Such assessments are not conclusive, but 
are prima facie evidence of regularity and of right to recover.—Wardle v. Town¬ 
send. 75 / 385. In making assessments, the receiver is invested with a liberal 



LAWS RELATING TO INSURANCE. 


17 


discretion, which will not be interfered with unless abused—Id. The evident 
object ot the provision for suit in the circuit court was to authorize the receiver 
to sue tor sums less than $100 in the circuit court and to recover costs in such 
suits.—Bacon v. Clyne, 70 / 185; Wardle v. Townsend, 75 / 396. The statute of 
limitations does not begin to run against a member’s liability for an assessment, 
until the assessment is made.-—Peake v. Fuller, 123 / 684. A member of a mutual 
nre insurance company is liable to the receiver after its insolvency for an 
assessment of his proportion of the losses and expenses sustained by the company 
up to the time that he terminated his relation with it, and is not relieved by 
having paid the amount claimed by the company to be due from him at the 
cancellation of the policy.—Nichol v. Newman, 160 / 582. Under the provision 
for the continuance of the business of the association by the receiver, he may 
be required to levy an assessment for the purpose of paying a death claim 
accruing after the filing of such petition, but before his appointment.—Taft v. 
Judge, 129 / 312. The discretionary action of a circuit judge in removing a 
receiver will not be reversed where it clearly appears that he did not accomplish 
what he ought to and would have accomplished had he exercised the diligence 
of a prudent man in winding up a business of his own.—In re Angell, 131 / 345. 
A receiver will be charged with assessments lost through his want of diligence 
in learning of the death of the debtors and presenting the claims against their 
estates.—Id. 


CHAPTER IV.—RATING BUREAUS. 

(30) Section 1. It shall be the duty of the commissioner Division 
of insurance to establish a rating division for fire insurance estabhshed - 
within his department. For this purpose the insurance com¬ 
missioner may employ not to exceed three experts and assist¬ 
ants, having experience in the operation of the fire insurance 
business and fire insurance rating and the use and application 

of schedules used in such rating, to take charge of such divi¬ 
sion, and such clerical help as may be necessary to maintain 
the work of such division. The number and compensation compensation, 
of such experts, assistants and clerks shall be fixed and deter- etc - 
mined by the state administrative board. The compensation how paid, 
and necessary expenses occasioned by the employment and 
duties imposed by this chapter shall be payable out of the 
appropriation for the insurance department. 

Am. 1923, Act 12. 

(31) Sec. 2. It shall be the duty of the commissioner of investiga- 
insurance to thoroughly investigate the subject of fire insur- bed? autll0r ' 
ance rates in this state, through the rating division hereby 
created, and to keep such information in convenient form in 

his office for the public use. Such investigation shall include what to 
the study of scientific methods of estimating fire hazards, include - 
fire protection, prevention of fires, cost of operation of in¬ 
surance companies, the experience of insurers both within 
and without this state, and the methods or systems in use for 
determining fire insurance rates and ratings. 

Am. Id. 

(32) Sec. 3. The commissioner of insurance through May deter- 
said rating division shall, have authority to determine the ™qut C y, d e tc., 
adequacy or the excessiveness of any rate charged by any fire of rates, 
insurance company on Michigan risks, on complaint of any 
individual or class of individuals or corporation, private or 
municipal, or on his own initiative, and may suspend any 

rate being charged, published, or put in force by any insur¬ 
ance company on Michigan risks, without prejudice to any 
particular policy or contract party, when it shall be made to 




18 


STATE OF MICHIGAN. 


May substi¬ 
tute rate. 


Review. 


Company may 

maintain 

bureau. 


Liability. 


Proviso, 

membership. 


Further 

proviso, 

license. 


“Rating 
bureau” de¬ 
fined. 


Further 

proviso, 

control. 


Bureau 

license. 


Application, 
what to show. 


appear that such rate is excessive, and the commissioner 
shall fix and order substituted a just and reasonable rate 
therefor, which substituted rate shall be based upon relative 
hazards, local conditions and all other reasonable elements 
entering into fire insurance ratings and rates. No order by 
the commissioner of insurance substituting any rate shall be 
taken until after a hearing in which the immediate parties 
at interest are represented, or given due notice of the same. 
The determination of the commissioner shall be subject to 
court review, in the manner hereinafter provided in section 
thirteen. 

Am. Id. 

(33) Sec. 4. Nothing in this chapter contained shall be 
construed as prohibiting any insurance company from main¬ 
taining its own rating bureau or the maintenance of bureaus 
on the part of fire insurance companies in common with each 
other, subject to the antimonopoly laws of this state, or 
writing any insurance independent of bureau ratings sub¬ 
ject to the provisions of section eleven of this chapter, but 
each fire insurance company shall be held individually liable 
for the rates adopted by it resulting in any violation of this 
chapter: Provided always, That any fire insurance company, 
on application and the payment of its reasonable share of 
maintenance thereof, shall be admitted to membership in any 
such bureau: And provided further, That no person, firm or 
corporation, or association of insurance companies or their 
agents or representatives shall, after this amending act takes 
effect, establish or maintain any such rating bureau without 
first obtaining a license therefor, and for any branch thereof, 
from the commissioner of insurance of this state, nor with¬ 
out otherwise complying with the provisions of this chapter 
respecting such license. The term “rating bureau” within 
the meaning of this act shall be deemed to mean and include 
any person, firm, corporation, or association of insurance 
companies, engaged in the business of fixing, establishing, 
publishing or promulgating rates for fire insurance to any 
insurance company or companies, by inspecting risks, or 
estimating the hazards, upon which fire insurance rates are 
based: Provided further, That no such bureau shall be 
governed, directed or its manager or management be chosen 
by or be subject to, any board, body, or directorate, composed 
in the majority of persons not residents of this state. 

Am. Id. 

(34) Sec. 4-a. Each rating bureau desiring to en¬ 
gage in such business shall, through its owner or its 
authorized agent, apply to the commissioner of insurance for 
a license for that purpose, upon a form to be made and sup¬ 
plied by such commissioner. Such application shall show: 
The name by which the bureau is to be known in law, and the 
owner or owners of, and the insurance companies contribut¬ 
ing to the same, with their addresses, and the location of 
the chief and branch offices of such bureau; that such bureau 



LAWS RELATING TO INSURANCE. 


19 


agrees to comply with the insurance laws of this state and 
any lawful order of the commissioner of insurance relative to 
such bureau and particularly with provisions of this chapter; 
that it will not employ unlicensed raters within this state; 
and such further declarations or statements as may be re¬ 
quired by the commissioner of insurance by virtue of this 
act. Each such application shall be accompanied by a Fee, main 
license fee in the sum of two hundred fifty dollars for the o!j£ e !? ranch 
main or head bureau and fifty dollars for each branch office 
thereof. Upon receipt of such application and license fees Term of 
the commissioner of insurance shall issue licenses in ac- llcense ‘ 
cordance therewith to such applicant for the term of one 
year from the date of issuance: Provided, however, That rroviso, may 
the commissioner may refuse such license to any bureau main- refuse 1,cense - 
tained in whole or in part by any insurance company or 
similar bureau not licensed to do business in this state, or 
which is under the management of any officer or employe not 
licensed as a rater in this state or which is in default in 
complying with any order issued by said commissioner. Every 
such license shall be revocable by the commissioner of in- Revocation or 
surance for any violation of the provisions of this act com- license!' 011 ot 
mitted by any officer or manager of the licensee, or such 
license may be temporarily suspended pending the rectifica¬ 
tion of the matter or things committed in violation of the 
terms of such license, in the discretion of said commissioner. 

No such license shall be suspended or revoked, however, with- Hearing, 
out first giving such bureau a hearing upon the complaint 
against it, which hearing shall be held before the commis¬ 
sioner upon such reasonable notice as he may determine. 

No person employed by any rating bureau shall engage in Rater’s license 
the business of inspecting fire insurance risks or property, or re( i uirec1 ' 
in the estimating of or the computation of fire insurance 
rates in this state without first being licensed therefor by 
the commissioner of insurance as a rater. Each applicant Application, 
for such license shall apply to the commissioner of insurance 
upon a blank application to be prescribed by him, setting 
forth his name, residence, length of experience as a rater or 
in the fire insurance business, the rating bureaus, if any, 
with which he has been connected, and with which he is then 
employed. Such application shall be accompanied by a fee p e e. 
of twenty-five dollars, and shall give as reference of good 
character and ability the names of at least two business or 
professional men of good repute in the community in which 
he resides or has resided within the next preceding two years. 

Upon receipt of such application and fee the commissioner Term 6f 
shall, if satisfied of the good character and fitness of such license, 
applicant, issue a license to such applicant for the term of 
one year from the date of issuance. Every such license shall Revocation, 
be revocable in the same manner as are the licenses of in¬ 
surance agents under this act, for any violation of the terms 
of this chapter. 




20 


STATE OF MICHIGAN. 


Renewal. All licenses issued hereunder shall be renewable at the ex¬ 

piration thereof upon the same terms and upon the payment 
of the same fees as are herein prescribed for the first license. 
Operating Any person operating any bureau, either as owner, prin- 
lTcense! cipal, or manager, or any person engaging in the business of 
a rater, without having a valid license therefor, shall be 
Penalty. deemed guilty of a misdemeanor, and shall upon conviction 
thereof be subject to imprisonment in the county jail for the 
term of not exceeding ninety days, or a fine of not exceeding 
one hundred dollars, or to both such fine and imprisonment 
in the discretion of the court; and each day of such operation 
or engaging shall be deemed a separate offense hereunder. 

Added 1923, Act 12. 


Compacts 

prohibited. 


Contract and 
agreement. 


Michigan 

office. 


Membership. 


(35) Sec. 5. No fire insurance company or any other 
insurer, or any representative of any fire insurance com¬ 
pany or other insurer shall enter into or act upon any agree¬ 
ment with regard to the collecting of any rate for fire insur¬ 
ance upon property within this state in violation of this act, 
or of any other law of this state. 

(36) Sec. 6. Except as contained in the policy and the 
usual agreement for other insurance, no insurance company 
or insurer shall make any contract or agreement with any 
person insured or to be insured that the whole or any part 
of any insurance shall be written by or placed with any par¬ 
ticular company, insurer, agent or any group of companies, 
insurers or agents. 

(37) Sec. 7. Every rating bureau making rates on or for 
property located in Michigan shall maintain an office within 
this state, and every fire insurance company or other insurer 
aforesaid shall in its annual application for a license specify 
each rating bureau making rates upon property located within 
this state of which it is a member, and, during the year, shall 
file notice of any other such rating bureaus of which it has 
become a member. 


Survey filed 
as record. 


Copies on 
request. 


Schedules 

confidential. 


What to show, 


Filing of 
basic sched¬ 
ules. 


Am. 1923, Act 12. 

(38) Sec. 8. Every rating bureau engaged in making 
rates or estimates for rates for fire insurance on property in 
this state shall inspect every risk specifically rated by it upon 
schedule, and make a written survey of such risks which shall 
be filed as a permanent record in the office of such bureau. 
A true copy of each such survey shall be furnished to the 
owner upon his request, and to the commissioner of insur¬ 
ance within ten days after such schedule has been completed. 
Such schedules, so filed, shall be deemed confidential records 
in the insurance department, and no person not employed in 
such department shall have access thereto without the written 
consent of the owner of the property scheduled and upon ex¬ 
press authority of the commissioner. Every such schedule 
shall show the name or names of the rater or raters who in¬ 
spected the risk and who figured the rates. Every such 
bureau shall file with the commissioner of insurance at the 



LAWS RELATING TO INSURANCE. 


21 


time of applying for its license a true copy of all basic 
schedules used by it in figuring rates and of all rules or 
practices pertaining to the final rate, including all amend¬ 
ments thereto, rules and regulations thereunder, and all in- interpreta- 
terpretations thereof, and of its instructions to its agents, tlons ‘ 
inspectors or other employes in relation to the application 
thereof; and shall also, from time to time as the same are 
made, furnish said commissioner with true copies of all new 
changes, modifications, additions thereto or interpretations Modifications, 
thereof. No such filings shall be effective or be employed when filings 
in this state unless and until approved by said commissioner, effectlve * 
and the commissioner shall, after reasonable notice and hear¬ 
ing thereon, have the authority to disapprove any particular Disapproval, 
part, rule, requirement or interpretation pertaining to such 
filings and to approve the rest, or to revoke his approval once 
given to the whole or any part of such filings, upon further 
consideration, in which case he shall notify the bureau of his Notice, 
action; and no such bureau shall thereafter use or employ 
any schedule, rule, interpretation, or part thereof, so dis¬ 
approved. 

Am. Id. 

(39) Sec. 9. The commissioner of insurance may address inquiries, 
inquiries to any rating bureau which is or has been engaged 

in making rates or estimates for rates for fire insurance upon 
property of this state, in relation to the organization, main¬ 
tenance or operation, or any other matter connected with its 
transactions, and shall require the filing of schedules, rates, 
forms, rules, regulations and such other information as may 
be required, and it shall be the duty of each such rating 
bureau to promptly make such filing or reply to such in¬ 
quiries in writing. The commissioner of insurance shall have Examinations, 
the power to examine any such rating bureau as often as he 
deems it expedient to do so, and shall have access to all the 
books, determinations, documents, schedules, forms and rec¬ 
ords of such bureau for the purpose of obtaining informa¬ 
tion for the use of the state. The commissioner shall have Power vested, 
the same power of examination and inspection of such 
bureaus as is vested in him by this act with respect to in¬ 
surance companies. Any owner, officer, or employe of any Penalty for 
such bureau who refuses to permit any such examination or e{J drance ’ 
inspection or who wilfully hinders or delays the same, or who 
refuses to furnish the commissioner any information in his 
possession or under his control, as provided for herein, shall 
be deemed guilty of a misdemeanor and in addition thereto 
the license of such bureau or the owner, officer or employe 
thereof, or all of them may be revoked or suspended by the 
commissioner as in other cases. 

Am. Id. 

(40) Sec. 10. No fire insurance company or other in- Excessive or 
surer against the risk of fire or lightning shall fix or charge to^StS'. 
any rate for fire insurance upon property in this state which is 




22 


STATE OF MICHIGAN. 


Penalty. 


Uniform 

deviation. 


Approval 

required. 


Insurance 
rating com¬ 
mission. 


Hearings. 


Complaints, 
how made. 


Notice of 
review. 


When rate 
deemed dis¬ 
criminatory. 
Commissioner 
not disquali¬ 
fied. 


excessive or which discriminates unfairly between risks in 
the application of like charges and credits, or which dis¬ 
criminates unfairly between risks of essentially the same 
hazards, wherever located, regard being had to the relative 
degree of protection against fire, or which discriminates un¬ 
fairly against or in favor of classes, or communities as a 
whole. Every rating bureau that fixes, finds, or advises any 
insurance company to charge any rate for fire insurance upon 
any property in this state which is excessive or which is dis¬ 
criminatory within the meaning of this chapter, shall be 
liable to having its (or his) license revoked or suspended by 
the commissioner of insurance as in other cases, in addition 
to any other penalties prescribed in this chapter. 

Ain. Id. 

(41) Sec. 11. Any deviation of any insurance company 
or insurer from the schedule of rates established by such com¬ 
pany shall be uniform in its application to all of the risks in 
the class for which the deviation is made, and no such uni¬ 
form deviation shall be effective unless notice thereof and the 
reason therefor shall be filed with the commissioner of in¬ 
surance, and has been approved by him. 

Am. Id. 

(42) Sec. 12. The attorney general, the commissioner of 
banking and the commissioner of insurance, as chairman 
thereof, shall constitute a commission to be known as the 
insurance rating commission, and upon written complaint 
being filed in the office of such commissioner of insurance 
or upon his own information that discrimination in rates 
exists between risks, in the application of rules of classifica¬ 
tion or of like charges and credits, or between risks of 
essentially the same hazard, wherever located, regard being 
had to the relative degree of protection against fire, or in any 
other manner prohibited by this act, such commissioner of 
insurance may order a hearing before such commission for 
the purpose of determining such questions of discrimination. 
Tn any proceeding authorized by this section, complaint may 
be made against either the insurance company or companies 
or the bureau concerned as the case may be, in making, fixing, 
finding, promulgating or charging the rate or rating com¬ 
plained of. The review of such rate before said commission 
shall be had only after ten days’ notice to all parties im¬ 
mediately interested; and if, upon such hearing, the commis¬ 
sion shall determine that said rate is discriminatory, it shall 
have power to order the discrimination removed; but no such 
discrimination shall be removed by increasing the rate or 
rates on any risk or class of risks affected by such order 
unless it shall be made to appear to the commission that 
such increase is justifiable. Any rate which is excessive or 
inadequate as the case may be shall be prima facie deemed 
to be discriminatory. The commissioner of insurance shall 
not be disqualified in any such hearing or proceeding by 



LAWS RELATING TO INSURANCE. 


23 


reason of being the real or nominal complaining party. Said 
commission may make and enforce all necessary rules and Rules and 
regulations as to matters of practice before it, and shall have re ^ ulatlons - 
the right to summon witnesses to appear before it in any 
matter under its jurisdiction, and to swear and compel them 
to testify; and in any case where a witness duly summoned 
shall refuse to testify or to answer questions put to him, shall 
have the right to apply to any circuit court in whose juris¬ 
diction such hearing is being held for a writ of attachment writ to com- 
against such witness, and in such case the court shall issue pel test,mon y- 
its order compelling such witness to appear or testify as the 
case may be, as provided in like cases in the judicature act 
of this state. Whenever it becomes necessary to summon any Summoning 
witness, the chairman of such commission shall so certify of' d wftnesses. t 
to the auditor general, and he shall issue his warrant upon 
the state treasurer for the estimated expense of fees and com¬ 
pensation of such witness, payable out of the general fund 
to the said chairman, who shall be responsible for the proper 
summoning and payment of such witness. 

Am. Id. 

(43) Sec. 13. Any violation of the provisions of this Suspension, 
chapter by any fire insurance company or other insurer cause or ‘ 
authorized to effect insurance against the risk of loss or 
damage by fire or lightning in this state or by any rate-making 
bureau or officer or agent of either, shall be cause for sus¬ 
pension of the authority of such company, insurer, rate-mak¬ 
ing bureau or agent to transact any business in this state 
until it or he shall have paid to the commissioner of insur¬ 
ance for the use and benefit of this state a penalty of not Penalty. • 
more than two hundred dollars for each violation, which 
penalties shall be assessed by the said commissioner of in¬ 
surance, or the court, whichever has jurisdiction of the matter 
or thing complained of and determined as the case may be: 

Provided, That any action taken by the commissioner of in- proviso, 

surance under the provisions of section three or section revlew - 

four-a, or by the insurance rating commission under section 

twelve of this chapter shall be subject to review by certiorari 

in the circuit court for Ingham county, but no order of the when order 

said commissioner or commission shall be deemed to be sus- not sus P ended * 

pended by reason of the issuance of such writ of certiorari 

unless the applicant for such writ shall provide a bond with Bond. 

such sureties and in such sum as the court shall fix and 

approve conditioned upon the payment by such applicant of 

all penalties and costs awarded or assessed against it in 

the final hearing, and the repayment by such applicant of 

such sum or sums of money to policy holders involved in 

or affected by such decision, which bond and the sureties 

thereon shall be first approved by the circuit judge and 

filed as in other cases. In addition to such bond, the com- d 

pany or companies securing such stay shall file a state- lequire 

ment with the court showing the name and address and policy 

number of every policy holder in the class affected by such 



24 


STATE OF MICHIGAN. 


Deposit. 


Costs. 


Companies 

exempted. 


Surcharges 

prohibited. 


Penalty. 


Procedure 
to incor¬ 
porate. 


Articles of 
association, 
contents. 


order, and shall deposit as the court may order a sufficient 
sum of money to make restitution to such insured parties of 
the amount of the excess of the premium collected as found by 
the commissioner or commission as the case may be, and upon 
the final judgment of the court, shall make any and all re¬ 
payments as shall be ordered by the court in accordance with 
its findings and judgment thereon. Reasonable costs may be 
awarded by the commissioner or commission or court, in any 
hearing or review had under this chapter. 

Am. Id. 

(44) Sec. 14. This chapter shall not apply to any fire 
insurance company authorized to do business in this state 
not charging an advance premium, nor to companies organ¬ 
ized and doing business under chapter four, part four of this 
act. 

(45) Sec. 15. No premium or rate of premium shall 
hereafter be charged, published, or put in force by any insur¬ 
ance company or insurer on policies issued on Michigan risks 
which premium or rate of premium includes any surcharge 
or other charge in addition to the normal rate applicable 
to the particular risk. Any insurance company or insurer 
violating the provisions of this section shall be liable to the 
penalty prescribed in section thirteen of this chapter. 

Added 1919, (ex. sess.), Act 4. 


PART TWO.—GENERAL REGULATIONS. 

CHAPTER I.—INCORPORATION OF COMPANIES AND CORPOR¬ 
ATE MANAGEMENT. 

(46) Section 1. No insurance company, association, or 
other form of corporate body, shall hereafter be incorporated 
in this state for the purpose of transacting any form of in¬ 
surance or surety bonding business, without complying with 
the procedure prescribed in this chapter. 

Sec. 8 of chap. 1, part 1, Act 84, P. A. of 1921 (corporation code), as amended 
by act 20 of the 1st ex. sess. of 1921, expressly exempts from its provisions in¬ 
surance corporations, fraternal benefit societies, etc. 

Under the provisions of sec. 7 of Act 85, P. A. 1921, as amended, all Michigan 
insurance corporations organized for profit, are required to file an annual report 
with the secretary of state during the months of July or August, upon forms pro¬ 
vided. 

(47) Sec. 2. The persons so associating shall subscribe 
articles of association, which shall contain: 

First, The names of the associates, and their places of 
residence respectively; 

Second, The name by which the incorporation shall be 
known, which if it be upon the mutual plan shall contain 
the word “mutual;” 

Third, The purposes of the incorporation and the refer¬ 
ence to the chapter and part of this act under which such 



LAWS RELATING TO INSURANCE. 


25 


purposes are enumerated and under which such company in¬ 
tends to operate; 

Fourth, The manner in which the corporate powers are to 
he exercised; the number of directors and other officers; the 
manner of electing the same, and how many of the directors 
shall constitute a quorum, and the manner of filling all 
vacancies; 

Fifth, The amount of capital stock, if any, and what pro¬ 
portion is to be paid in before the corporation shall com¬ 
mence business; 

Sixth, The time for the holding of the annual meetings of 
the corporation; 

Seventh, Any terms and conditions of membership therein 
which the incorporators may have agreed upon, and which 
they may deem important to have set forth in said articles; 

Eighth, Any other terms and conditions prescribed by law 
for such class of company of insurance; 

Ninth, If a mutual company operating on the assessment 
plan, the number of classes or divisions of members therein, 
and the object or purpose of such classification or division, 
all of which shall be definitely and correctly stated; in what 
manner assessments, premiums or payments are to be required 
from the members, the purpose and objects for which the 
moneys so realized are to be appropriated, and the names 
and objects of each fund into which any such money shall be 
paid. 

Where the articles of association provide for the payment of policies only in 
the event of the death of the insured, the company cannot issue a policy 
payable upon the occurrence of total disability.—Preferred Mass. Mut. Life Ins. 

Co. v. Giddings, 112/401. The articles of association, by-laws and certificates 
of membership determine the rights of the members and the association, and 
may be enforced by the parties and beneficiaries according to their respective 
rights as therein provided.—Union Mut. Ass’n v. Montgomery, 70 / 594. The 
statute under which the association is organized, in force when the insurance 
contract is made, forms part of the contract and governs as to its construction.— 

Silvers v. Mich. Mut. Ben. Ass’n, 94 / 39. A mutual life insurance company may, 
where its articles of association are framed accordingly, write whole-life policies, 
term insurance, advance payment insurance and insurance upon joint lives.— 

Home Life Assurance Co. v. Maynard, 112 / 497. Provisions in the articles and 
by-laws of a fraternal benefit association, creating a tribunal of its members 
to hear and determine all claims of members against it and declaring its decisions 
final, are valid and form a part of the voluntary contract of membership.— 

Derry v. Great Hive L. O. T. M., 135 / 494; O’Neill v. Ancient Order of Gleaners, 

17fi / 628. Finality of decision.—Barker v. Great Hive L. O. T. M., 135 / 499. 

The failure to file certain copies of articles of association, as required by law,' 
by a corporation in being, cannot be set up by private nersons to avoid corporate 
contracts. Such failures are, at most, but violations of duty to the state, which 
the state can punish for forfeiture or penalties.—Jhons v. People, 25 / 502. 

(48) Sec. 3. Such articles shall be acknowledged by the Acknowiedg- 
persons signing the same before some officer of this state ment of - 
authorized to take acknowledgments of deeds, who shall ap¬ 
pend thereto, his certificate of acknowledgment. All such issued in 
articles shall be in triplicate and upon proper forms as pre- trl P llcate - 
scribed by the commissioner of insurance as hereinafter pro¬ 
vided in this chapter. 

(49) Sec. 4. The said articles of association shall be Examination 
submitted to the attorney general for his examination and if of - 
found by him to be in compliance with this act, he shall 

so certify to the commissioner of insurance. The said articles To be filed 
shall be filed in triplicate with the commissioner of insurance, ln tr, P llcate - 




26 


STATE OF MICHIGAN. 


Examination 
of capital 
stock, etc. 


Who to per¬ 
form, etc. 


Certificate of 
authority. 


Subscription 
to capital 
stock. 


By-laws. 


one copy for his office hies, and one copy to be certified for 
filing with the county clerk and one copy to be certified by 
the commissioner of insurance for the records of the company 
itself. Upon receiving the certificate of the attorney general, 
as aforesaid, the commissioner of insurance shall cause an 
examination to be made in respect to the capital stock and 
shall see that the requirements as to the same have been fully 
complied with; and if the company is organized to do busi¬ 
ness on the mutual plan, that the company is in the actual 
possession of the applications for insurance, required of it, 
or the amount of assessments or reserve and other capital, 
as the case may be, and that it was shown to him by the 
affidavit of the president and secretary of the company that 
such applications have been taken in good faith and not 
merely colorably, and that such officers believe it to be the 
intention of each of the applicants to receive and pay for 
policies thereon, when the company shall be prepared to issue 
the same. The commissioner of insurance may perform such- 
examination by deputy or by any examiner in his office, or 
by the appointment of a special examiner, who shall certify 
to the facts as found. Upon being satisfied that all require¬ 
ments of this act precedent to commencing business have been 
fully complied with, applicable to such company, the com¬ 
missioner of insurance shall deliver to such company a cer¬ 
tificate of authority to commence business and issue policies. 

Failure to file a certified copy of the articles of association with the county 
clerk cannot be set up by private persons to avoid contracts.—Jlions v. People, 
25 / 499. 

This section applies to domestic corporations and prescribes what shall be 
“their authority to commence business and issue policies.”—Seamans v. Temple 
Co., 105 / 403. It is the policy of this state to limit the business of insurance 
to such corporations, domestic and foreign, as shall be authorized by the com¬ 
missioner of insurance to do business, after compliance with certain regulations 
and conditions prescribed by law.—Id. 

The provision as to filing the charter and certificate was not designed to avoid 
contracts, but simply to facilitate the means of proving the corporate existence. 
—Jlions v. People, 25 / 499. Even if the filing were necessary to corporate 
existence, a party insured or dealing with the corporation could not question 
its existence.—Id., 502-3; Cahill v. Insurance Co., 2 Doug. 124. The insurance 
commissioner may be compelled by mandamus to give certified copies.—Jhons v. 
People, 25 / 502. 

(50) Sec. 5. The persons so associated shall, after the 
filing and approval of such articles as aforesaid, open the 
books of subscription to the capital stock of the corporation 
and may keep the same open until the whole amount specified 
in the articles shall be subscribed; or, if said corporation is 
to transact business on the mutual plan, then they shall open 
books to receive propositions and enter into agreements as 
specified in the chapter under which it intends to operate. 

Am. 1919, Act 117. 

Where the charter makes it the absolute right of farm owners in the county 
to become members on subscribing the articles and applying for insurance oil 
prescribed terms, the secretary cannot cut off such right by refusing an actual 
tender from one already a member and an applicant for insurance.—Gay v. 
Farmers’ Mut. Ins. Co., 51 / 245. 

(51) Sec. 6. The directors or trustees of any company 
organized under this act shall have power to make such by¬ 
laws, not inconsistent with the constitution and laws of this 
state, or with their articles of association, as they may deem 




LAWS RELATING TO INSURANCE. 


27 


necessary for the government of the officers and members of 
the company, and the conduct of its affairs. All by-laws of where filed, 
companies operating on the assessment plan, and any amend¬ 
ments thereto, shall be filed with the commissioner of insur¬ 
ance and be approved by him before becoming operative. 

(52) Sec. 7. Any company formed under this act shall Amendments 
have power to amend its articles of association at any an- to artlcles ‘ 
nual meeting of the stockholders or members, or at any special 
meeting called by the directors for that purpose, but notice Notice of 
of any such annual or special meeting and of the purpose for meeting * 
which it is called shall be served on each of the stockholders, 

or if it is a mutual company on each of the members, either 
personally or by directing the same through the postoffice 
to the last known postoffice address of such stockholder or 
member at least three weeks previous to such meeting, or may 
publish such notice of said annual or special meeting in a 
newspaper printed, published and circulated within the 
county or counties in which said company is transacting 
business, at least two successive weeks prior to said meeting, 
the last publication to be made at least five days prior to 
date of holding such meeting. Such amendments shall not when 
take effect until submitted to the attorney general and certi- effective - 
tied by him not. to conflict with the constitution or laws of 
this state. Such amendments shall be filed in triplicate with How filed, 
the commissioner of insurance, one copy for his own records, 
one copy for the county clerk where the original copies were 
filed, and one copy to be returned to the company with a 
certified copy of the certificate of the approval of the com¬ 
missioner of insurance attached thereto. All such amend¬ 
ments shall be upon the form prescribed by the commissioner 
of insurance. 

Am. 1919, Act 117. 

For notice required under general mutual law, see section 318. 

(53) Sec. 8. All companies formed under this act shall Deemed 
be deemed bodies corporate and politic, in fact and in name, jjgjNg ami 
and shall be subject to all of the provisions of law in rela- politic. 1 
tion to corporations as far as they are applicable. Suits at suits at law. 
law may be maintained by corporations formed under this 

act against any of its members for any cause relating to the 
business of such corporation; also suits at law may be prose¬ 
cuted and maintained by any member against such corpora¬ 
tions for claims which may have accrued if payments are 
withheld more than sixty days after such claims shall have 
become due. No article, by-law, resolution or policy provi¬ 
sion adopted by any life and casualty insurance company 
doing business in this state prohibiting a member or bene¬ 
ficiary from commencing and maintaining suits at law or in 
equity against such company shall be valid and no such arti¬ 
cle, by-law, provision or resolution shall hereafter be a bar 
to any suit in any court in this state: Provided, however, proviso. 
That any reasonable remedy for adjudicating claims estab¬ 
lished by such company or companies shall first be exhausted 



28 


STATE OF MICHIGAN. 


Further 

proviso. 


Corporate 

existence. 


Real estate 
holdings. 


by the claimant before commencing suit: Provided further, 
however, That the company shall finally pass upon any claim 
submitted to it within a period of six months from and after 
final proofs of loss or death shall have been furnished any 
such company by the claimant. 

A by-law, assented to in writing by each applicant, providing for the sub¬ 
mission of differences to arbitration does not contravene this section.—Raymond 
v. Farmers’ Mut. Fire Ins. Co., 114 / 386. A member of a mutual fire insurance 
company obligates himself to pay a proportionate share of the losses and ex¬ 
penses for the period during which he is insured; and if such liability has not 
been covered by assessment, it continues, although he may have ceased to be 
a member.—Farmers’ Mut. Fire Ins. Co. v. Judge, 100 / COO. The receipt of past 
due assessments after a loss and the direction to pay the loss constitute a 
waiver of any forfeiture incurred by delay in paying assessments.—Farmers’ 
Ir.s. Co. v. Bowen, 40 / 147. Prematurity of action against company.—Baptist 
Church v. Insurance Co., 119 / 203. A lien of this kind, where the amount, in¬ 
clusive of costs, is less than $100 is not within the jurisdiction of the chancery 
courts.—Peake v. Bradley, 121 / 182. 

These associations are, strictly speaking, insurance organizations, whenever, 
in consideration of periodical contributions, they engage to pay the member 
or his designated beneficiary, a benefit upon the happening of a specified con¬ 
tingency.—Rensenhouse v. Seeley, 72 / 617. A beneficiary society (organized 
under the act of 1869), providing only for the payment of a certain sum in 
case of death and for periodical payments in case of sickness or disability, is 
not authorized to conduct an endowment insurance business.—Walker v. Com¬ 
missioner, 103 / 344. An amendment of the articles of association of a corpora¬ 
tion organized under the act of 1869, so as to conform to the provisions of this 
act made before this act took effect, was premature.—Mich. Mut. Ben. Ass’n v. 
Rolfe, 76 / 146. The reorganization of companies organized under the act of 1869 
is not involved in a suit by a private party; the state only can inquire into that. 
—Meurer v. Mut. and Ben. Ass’n, 95 / 451. This act discussed.—Calkins v. Angell, 
123 / 77. Rival organizations for mutual benefit insurance.—Great Hive L. O. T. 
M. Mich. v. Supreme Hive L. O. T. M. of World, 135 / 392. Insurable interest and 
selection of beneficiaries.—Dolan v. Catholic Mutual Benefit Ass’n, 152 / 266. When 
commissioner may refuse to grant certificate of authority to an insurance company 
to do business.—Am. Health & Accident Ins. Co. v. Com’r of Insurance, 154 / 193. 
Limitation of action, see Johnson v. F'id. & Casualty Co., 184 / 406. 

Although the stipulations in a mutual fire insurance policy providing for arbitra¬ 
tion of a claim and making the award of the arbitrators final, are valid and bind¬ 
ing on the insured, yet, where the insurer, in carrying out the methods stipulated 
in the contract, acts in bad faith so as to defeat the real purpose of the arbitra¬ 
tion, the insured has the right to ignore the proceedings, and without waiting for 
the award, at once commence an action at law on the policy.—Shapiro v. Patrons’ 
Mutual Fire Insurance Co., 219/581. 

(54) Sec. 9. Whenever it shall be necessary, in any legal 
proceedings, to prove the corporate existence of any such 
company, a copy of the articles of association, with a certifi¬ 
cate by the commissioner of insurance attached, that such 
copy is a duplicate of the copy on file in his office; and that 
it has been made to appear to him by the certificate of the 
proper county clerk, that another copy of such articles has 
been duly filed in the office of sucfi clerk, and by the certifi¬ 
cate of the state treasurer in proper cases, that the securities 
required to be deposited with him have been deposited, 
together with a certified copy of such company’s certificate 
of authority, shall be prima facie evidence of the corporate 
existence of the company; and except in proceedings by or 
under the authority of the state, to question its corporate 
right by information in the nature of quo warranto or other¬ 
wise, shall be conclusive evidence of the authority of the com¬ 
pany to issue policies and transact business as contemplated 
by its articles, until such authority has been terminated. 

(55) Sec. 10. No company, including fraternal benefi¬ 
ciary societies, formed under this act shall purchase or hold 
any real estate, except: 

1. Such as shall be necessary for its immediate accom¬ 
modation in transacting business; or 




LAWS RELATING TO INSURANCE. 


29 


2. Such as shall have been conveyed or mortgaged to the 
company in good faith, by way of security for debts; or 

3. Such as shall have been conveyed to the company in 
satisfaction for debts; or 

4. Such as shall have been purchased at sales upon judg¬ 
ments, decrees or mortgages in favor of such company, or 
held by or owned by it; and all real estate obtained by vir¬ 
tue of any provisions of this section, except that mentioned in 
the first sub-division, shall be sold or disposed of within live 
years after the title has been perfected in such company, un¬ 
less the company shall procure a certificate from the commis¬ 
sioner of insurance that the interest of such company will 
materially suffer by a forced sale, in which event the sale may 
be postponed for such period as the said commissioner of 
insurance shall direct in such certificate, not to exceed ten 
years in all: Provided, however, That any stock life insur- Proviso, 
ance company and any stock fire or casualty insurance com- bunding 6 
pany, may invest not to exceed twenty per cent of its assets 

in a home office building, and may continue to hold the same 
for its use and as a source of revenue: Provided further, Further 
That no such investment shall be made unless and until a proviso - 
certificate of permission for the purchase of such property 
is granted by the commissioner of insurance after appraisal 
of such property by at least three property owners of the city 
in which the home office of such company is located, appointed 
by the commissioner of insurance for the purpose of such 
appraisal, and their certification to the commissioner of a 
valuation of the property at least equal to the amount which 
is proposed to be invested therein by such company. 

Am. 1921, Act 107. 

(56) Sec. 11. The corporate existence of any company Term of cor- 
incorporated under or subject to this act shall not exceed p £™te exist ‘ 
thirty years, unless a longer term is provided in the articles 

of association. Any company hereafter incorporated under 
this act may incorporate for a period of any specific number 
of years, not less than thirty, or multiples of thirty, or in 
perpetuity, provided that the legislature may shorten such 
terms by future laws. 

(57) Sec. 12. That it shall be lawful for any insurance Renewal of 
corporation, whose term is about to expire by limitation, at tSJ,° r fat e 
any time within two years next preceding the expiration of required, 
such term, by a vote of two-thirds of its capital stock, or of 

its members, present and voting, as the case may be, at any 
annual meeting, or at any special meeting of its stockholders 
or members called for that purpose, to direct the continuance 
of its corporate existence for such further term not less than 
thirty years from the expiration of the existing term, as may 
be expressed in a resolution for that purpose. The president Resolution in 
and secretary of such members’ or stockholders’ meeting shall triplicate, 
make and sign triplicate copies of such resolution, and its 
passage shall be verified by the oath of such secretary at¬ 
tached to each of such duplicates. One of said copies shall where filed. 





30 


STATE OF MICHIGAN. 


Proviso, fee. 


Renewal after 
expiration of 
charter. 


Duty of 
trustees at 
expiration of 
corporate life. 


Dividends, 
not to be 
declared. 


Bond of 
trustees. 


be filed in the office of the commissioner of insurance and 
one with the clerk of the county where the principal office 
of the corporation is located, and both shall be recorded at 
the expense of said corporation and the copies so filed, or the 
record thereof, or certified copies of either of such records, 
shall be prima facie evidence of the passage of such resolution 
and of the extension of said corporate life: Provided, That 
the franchise fee, which may be provided by law for new cor¬ 
porations, shall be paid before such term shall be extended. 
Such action may likewise be taken within eighteen months 
next after the expiration of such charter, with the consent 
in writing of the commissioner of insurance. The renewal 
term of such corporation shall begin from the expiration of 
the former term, and the corporation whose term has thus 
been renewed shall be the same corporation, and own all its 
property, and be subject to all its liabilities, have the same 
stockholders and members and the same officers. The rights 
of all persons interested in said corporation shall continue as 
before such extension. The articles of association and by¬ 
laws shall continue the same until changed or amended by 
the corporation in the manner required by law. 

Am. 1923, Act 52. 

(58) Sec. 13. In case the stockholders or members 
thereof shall not, before the expiration of such corporate ex¬ 
istence, organize a new corporation for the same purposes, 
on the basis of receiving the assets of the old corporation, 
and assuming the performance of all its existing contracts 
and policies, the officers of such corporation, at the expiration 
of its corporate life, shall be trustees for the purpose of keep¬ 
ing its funds invested for the security of policy-holders, set¬ 
tling its affairs, and fulfilling and discharging its obligations, 
and as such, shall be under the control and direction of the 
proper circuit court in chancery, or other equity court, as 
in the case of other trustees; but the officers of such corpora¬ 
tion shall not, at the time of the termination of the corporate 
existence, or in anticipation thereof, make or declare any 
dividend, or, except in satisfaction of the demands of credi¬ 
tors or policy-holders, make any other disposition of the as¬ 
sets of the corporation, or of any part thereof, which shall 
leave the available amount of such assets below the amount 
of existing debts and of the net value of outstanding policies, 
to be determined as hereinbefore provided; and any such 
attempted dividend or distribution shall be void, and may 
be enjoined on the application of the commissioner of insur¬ 
ance; and such officers, before entering upon their duties as 
such trustees, shall give bond to the people of the state to 
the satisfaction of the commissioner of insurance and to be 
filed with him, conditioned for the faithful discharge of 
their duties as such; and they shall be at all times subject to 
the supervision of the commissioner of insurance, in the same 
manner that corporations are under the provisions of this 



LAWS RELATING TO INSURANCE. 


31 


act ; but such trustees shall not be at liberty to make divi¬ 
dends among stockholders, nor to members, unless in reduc¬ 
tion of premiums on outstanding policies, except under the 
order of the proper court of equity; nor shall such court be 
at liberty to order any such dividends as shall at any time 
reduce the available assets of the company below the amount 
of existing debts and the net value of outstanding policies, 
to be determined as hereinbefore provided. 

(59) Sec. 14. In all companies organized under or sub- Trustees, 
ject to this act, the trustees or directors shall be actual resi- who t0 be> 
dents of the United States, and the majority shall be resi¬ 
dents of the state of Michigan: Provided, however, That Proviso, to be 
each director of a stock insurance company shall be the owner stockholders - 
in his own right of at least ten shares of the capital stock 

of such company, and of a mutual or co-operative assessment 
company, shall be a subscriber for insurance therein. 

(60) Sec. 15. Special meetings of the stockholders Or Special 
members of any corporation organized under or subject to meetln s s - 
this act may be called by the directors or trustees at any 

time when deemed advisable, and notice of all meetings of Notice of ail 
the members or stockholders shall be given by mailing to meetln ^ s - 
each member or stockholder a copy of such notice, postage 
prepaid, directed to his last known postoffice address at least 
twenty-one days prior to the time fixed for such meeting, and 
such notice shall state the time and place, and if it be a if special, 
special meeting, the purpose of such meeting. 

(61) Sec. 16. It shall be lawful for any insurance com- investment 
pany organized or doing business under this act, or incor- of funds - 
porated under any law of this state, to invest its capital and 

the funds accumulated in the course of its business or any 
part thereof: 

First, In bonds or notes secured by mortgage lien upon Mortgages, 
unencumbered real estate worth at least double the amount 
loaned; 

Second, In the bonds of the United States, or any state or Bonds, 
territory of the United States, or in the valid public debt 
or bonds of any city, county, township, village or school 
district of any state or territory in the United States: Pro- Proviso, 
vided, That such state or municipality has not, in the ten 
years preceding the time of such investment, repudiated its 
debt or failed to pay the same or the interest due thereon, 
or upon any part of such debt: And provided further, That Further 
the net indebtedness of said city, county, township, village piovlso * 
or school district shall not exceed eight per cent of the as¬ 
sessed valuation of all the real state [estate] therein; 

Third, (a) In the lawful authorized first mortgage bonds Railroad 
of any steam railroad corporation organized under the laws bonds * 
of any state of the United States; 

(b) In the first mortgage bonds of railway companies 
whose lines are leased or operated or controlled by any rail¬ 
road company specified in paragraph three (a), if said bonds 
be guaranteed both as to principal and interest by the rail- 



32 


STATE OF MICHIGAN. 


Steamship 

bonds. 

Proviso. 


Further 

proviso. 


Further 

proviso. 


Avav company to which said lines are leased, or by which 
they are operated or controlled; 

(c) In the lawful authorized first mortgage bonds of any 
steam railway incorporated under the laws of any state of 
the United States, issued for the purpose of retiring all prior 
mortgage indebtedness on so much of the property of such 
company as is covered by the mortgage securing such issue 
of bonds, and further providing for additions, extensions or 
improvements; 

(d) In the lawful authorized first mortgage bonds of any 
electric railway, street railway, gas or electric light or power 
company organized under the laws of the state of Michigan; 

(e) In the lawful authorized first mortgage bonds of 

steamship companies: Provided, That any such company 
mentioned in the foregoing sub-divisions has for five years 

prior to the time of making such investment by said insur¬ 

ance company paid annually dividends equal to not less than 
four per cent of its entire capital stock, and has not during 
said period defaulted in the payment of the matured princi¬ 
pal or interest of any debts incurred by it and secured by 

mortgage or trust deed upon its property or any part there-, 

of, or in the payment of any part of the matured principal or 
interest of any bonds guaranteed or assumed by it, and pro¬ 
vided that in the case of electric railroad, street railways, 
gas or electric light or power companies above referred to, 
the cost of construction and equipment of the plant of such 
company shall exceed by at least fifty per cent the amount 
of the entire bonded indebtedness of such company, and the 
plant and equipment shall be free from all other liens and 
incumbrances, and the said company shall have earned dur¬ 
ing the period it has been in operation more than enough to 
pay all interest accrued on all said bonds and not less than 
four per cent per annum dividends upon its entire capital 
stock outstanding: Provided further, That in the case of 
first mortgage bonds of steamship companies such mortgages 
shall be upon steel steamships or steamships for the carriage 
of freight, or package freight and passengers combined, upon 
the great lakes and connecting waters of at least five thou¬ 
sand tons carrying capacity each: And provided further. 
That such bonds are issued at the time of the completion and 
enrollment of such steamship or steamships, or within one 
year thereafter, and that by the express terms of said mort¬ 
gage, at least ten per cent of the total issue of said bonds 
shall be retired annually beginning within two years from 
the date of said bonds, and that the mortgage liability against 
the said property shall not exceed one-half of its actual cost, 
and that the trustee of such mortgage shall be required to 
protect the lien of said mortgage by attending to the record¬ 
ing thereof and by causing property covered by said mort¬ 
gage to be insured against all risks on vessel property ordi¬ 
narily covered by such insurance, including marine risks and 
disasters, general and particular average, collision liability, 
protection and indemnity insurance, and insurance against 



LAWS RELATING TO INSURANCE. 


33 


liability for injury to persons, in insurance companies and 
under forms of policies approved by the trustee, for an 
amount equal to the full insurable value of such steamship, 
such insurance to be made with loss payable to said trustee, 
and policies deposited with it; and that, by the terms of such 
mortgage the mortgagor shall not suffer such steamship to 
become indebted in an amount exceeding five per cent of the 
original amount of the principal of said mortgage at any 
time, and that the failure of the mortgagor to forthwith pro¬ 
cure the release of such steamship or steamships from me¬ 
chanics’, laborers’, admiralty, statutory, or other liens, claims 
or charges against such steamship, shall constitute a default 
in the provisions of such mortgage: Provided further, that Further pro¬ 
as to any bonds mentioned in this sub-division they shall have' of S °bonds. r ° val 
been first approved by the securities commission, created by 
section sixty-seven, act number two hundred sixty-two of 
the public acts of nineteen hundred five; 

Fourth, In any negotiable paper or other evidences of in- collateral 
debtedness secured by any of the above mentioned classes Ioans - 
of security; 

Fifth, Upon negotiable notes secured by pledge of stock collateral 
of national or state banks, which have a surplus of twenty- b y a b S ank CUied 
live per cent more than the capital: Provided, That such stock, 
loans shall not exceed eighty-five per cent of the market Provlso - 
value of the stock, and that the total amount of the loan on 
bank secured collateral shall not exceed fifteen per cent of the 
capital and surplus of the insurance company: Provided Further 
further, That not more than one-fourth of the capital and provlso * 
surplus of any insurance company shall be loaned on or 
invested in the bonds of any one steam railroad, and not more 
than one-tenth of the capital and surplus shall be loaned on 
or invested in the bonds of any one railway corporation 
other than a steam railway, and not more than one twentieth 
(if the capital and surplus shall be loaned on or invested in 
the bonds of any one company or corporation other than rail¬ 
roads, and not more than one-tenth of the capital and surplus 
shall be loaned to any one person, corporation or firm on 
collateral pledges; 

Sixth, In the farm loan bonds to be issued by the federal Farm loan 
land banks operating under the act of congress approved July 1,011 s * 
seventeen, nineteen hundred sixteen; 

Seventh, In such governmental securities of this or any other govem- 
foreign government, or governmental subdivisions thereof, Murines, 
not otherwise provided for herein, as may be first approved 
by the securities commission herein above referred to and the 
commissioner of insurance and subject to such limitations 
as are herein prescribed for other government and municipal 
securities: 

Provided, That any insurance company of this state owning Proviso, 
or possessing any bonds, stocks or other securities not in 
conformity with the provisions of this act shall dispose of 
such securities within five years from the date of the passage 
of this act. 



34 


STATE OF MICHIGAN. 


Forms for 
articles. 


Adoption of 
name. 


Filing fee. 


Fee for ex¬ 
amination of 
articles. 


Disposition of 


Consolidation 
or reinsur¬ 
ance. 


Petition to 
commissioner. 


Approval by 
stockholders. 


Final 

approval. 


The securities commission referred to in the last proviso of the third sub-division 
of this section is the “Michigan Securities Commission,” as last created and pro¬ 
vided for by Act No. 220, P. A. 1923. The commission, as now constituted, has 
three members, and maintains an office at Lansing, Michigan. 

(62) Sec. 17. The commissioner of insurance shall pre¬ 
pare and keep on hand blank forms of articles of association 
for companies desiring to incorporate under this act; and 
forms covering the procedure for amending such articles, 
which forms may be had on application, and shall be used 
by all companies hereafter incorporated or amending their 
articles of association. 

(63) Sec. 18. No company formed under this act shall 
assume any name which is the same as or closely resembles 
the name of any other corporation doing business in this 
state, and every insurance company shall transact its busi¬ 
ness under its own name, and shall not adopt any assumed 
name excepting that any corporation may by amending its 
articles of association, change its name or take a new name. 

(61) Sec. 19. Every insurance company hereafter or¬ 
ganized in this state, and every foreign insurance company on 
being admitted to do business in this state, shall pay to the 
commissioner of insurance, a filing fee of twenty-five dollars, 
provided that domestic mutual insurance companies, doing 
business on the assessment plan, shall only be required to 
pay a filing fee of ten dollars. Every insurance company 
shall pay to the attorney general, for the examination of its 
articles of association or any amendments thereto, the sum 
of five dollars. All such fees shall be covered into the state 
treasury for the benefit of the general fund. 

(65) Sec. 20. Any corporation organized under the laws 
of this state and transacting business under the provisions 
of this act may consolidate with or reinsure all or any part 
of its outstanding risks with any corporation of like charac¬ 
ter authorized to transact business in the state of Michi¬ 
gan. When any such corporation proposes to consolidate 
with or reinsure its outstanding risks with any other cor¬ 
poration, it shall first present its petition to the commis¬ 
sioner of insurance, setting forth the terms and conditions 
of the proposed consolidation or reinsurance. After the 
presentation of the petition as aforesaid, any contract of 
consolidation or reinsurance must be approved by the affirma¬ 
tive vote of not less than two-thirds of the capital stock if 
it be a stock corporation, or two-thirds of the members vot¬ 
ing in person or by proxy if it be a mutual corporation, at a 
regular or special meeting of the stockholders or members, 
but notice of such meeting and of the proposed consolidation 
or reinsurance shall be served on each of the stockholders 
or members, as the case may be, either personally or by direct¬ 
ing the same through the postoffice to the last known post- 
office address of such stockholder or member at least three 
weeks previous to such meeting. Such contract shall not be¬ 
come effective until finally approved by the commissioner of 
insurance. Any public official holding securities deposited 
by such corporation so consolidated or reinsured, which se- 




LAWS RELATING TO INSURANCE. 


35 


curities, under the terms of the consolidation or reinsurance 
contract, pass to any other corporation assuming the liabili¬ 
ties for which said securities are held, shall upon the written order for 
order of the commissioner of insurance deliver the same to secudUes ° f 
the corporation entitled thereto by the terms of such con¬ 
tract. Nothing in this section shall prevent any corporation 
from reinsuring a fractional part of any individual risk. 

Added 1919, Act 362. 

See Act 388, P. A. of 1921, compiler’s secs. 355-58. 

(66) Sec. 21. The foregoing section shall not apply to companies 
any company, association or society doing business under the exem P ted - 
provisions of chapter three or four, part three of this act. 

Added Id. 


CHAPTER II.—ADMISSION OF FOREIGN INSURANCE 
COMPANIES. 

(67) Section 1. No foreign insurance company, whether Foreign com- 
corporate or otherwise, shall be permitted to do any form of pany - 
insurance business in this state without a certificate of 
authority from the commissioner of insurance, nor for any 
purpose, nor to carry on any class of insurance which is not 
regulated by this act. No certificate of authority to transact Application 
any kind of insurance in this state shall be issued to any o? r authority. 
foreign company or association until such company shall file 
with the commissioner of insurance an application therefor 
upon such form as the commissioner shall prescribe. Such copy of 
application shall be accompanied by a copy of such company’s tS a Iccom- etCM 
charter, compact or articles of association or agreement, and pany. 
by-laws, duly certified by the commissioner of insurance or 
corresponding officer of the state of origin or entry, together 
with a sworn statement of such company’s business affairs 
up to any date required by the commissioner of insurance of 
this state to be furnished him, and any other information, 
under oath or otherwise, that the commissioner of insurance 
may demand of such applicant. The commissioner of insur- commis- 
ance shall examine such application and if satisfied that such examine. 0 
applicant is possessed of the capital and assets required of 
like companies organized in this state, is authorized to do the 
kind or class of insurance it seeks to transact, and has com¬ 
plied in all other respects with the laws of this state, as 
applicable thereto, he shall issue his certificate of authority To issue 
to such applicant. All certificates of authority issued to ^hel^to’ 
foreign insurance companies shall expire on the last day of expire. 
February of each year, and be renewed annually upon full 
compliance with this act. 

For admission requirements under the general mutual law, see section 333. 

A state has the right to impose conditions, not in conflict with the constitution 
or the laws of the United States, to the transaction of business within its territory 




36 


STATE OF MICHIGAN. 


by an insurance company chartered by another state, or to exclude such company 
from the territory, or, having given a license, to revoke it with or without cause. 
—Doyle v. Continental Ins. Co., 94 U. S., 535. 

An insurance corporation organized in another state can be admitted to do 
business in this state only upon such terms as this state may impose.—Pollock 
v. German Fire Ins. Co., 132 / 225. No foreign insurance company, however formed 
or created, can directly or indirectly take any fire risks or transact any business 
within this state, unless authorized so to do.—People v. Howard, 50 / 248; Hartford 
Fire Ins. Co. v. Raymond, 70 / 501. Submission to the exclusive jurisdiction of 
the courts of this state, by a foreign corporation, is a waiver of its right, as a 
quasi citizen of another state, to remove causes to the federal courts.—People 
v. Judge, 21 / 577; Home Ins. Co. v. Davis, 29 / 238. But see Ins. Co. v. Morse. 
20 Wallace, 445, and Hartford Fire Ins. Co. v. Raymond, 70 / 503. In an action 
upon a policy of a foreign insurance company, its authority to do business 
need not be proved and the company is estopped from denying its authority and 
defending upon such grounds.—Clay F. & M. Ins. Co. v. Huron S. & L. Co., 31 / 340. 

The state has the power to prescribe the conditions upon which individuals 
shall have the right to transact the business of insurance* within its borders, so 
long as it does not violate the federal constitution by discrimination against 
citizens of other states.—People v. Gay, 107 / 422. A foreign mutual company, 
not authorized to do business in this state, cannot maintain a suit to collect 
assessments due on policies, etc.—Swing v. Weston Lumber Co., 140 / 344; Swing 
v. Cameron, 145 / 175. 


Capital and 
assets. 


Proviso, how 
may be 
invested. 


Supervision 
and examina¬ 
tion. 


Statements. 


Penalties. 


Commissioner 
may investi¬ 
gate affairs. 


Revocation of 
certificate. 


(68) Sec. 2. Every foreign insurance company, doing 
business in this state, shall be possessed of such an amount 
of capital and assets as are required of, and computed by 
the same rules as are applied to, like domestic companies, 
and the commissioner of insurance shall not authorize any 
foreign insurance company to transact any kind of insurance 
in this state unless and until such company is possessed of 
such required amount of capital and assets: Provided, how* 
ever, That such capital and assets may be invested in con¬ 
formity with the laws of the state or country under which 
such company is organized. 

(69) Sec. 3. The commissioner of insurance shall have 
the same supervision and make the same examination of the 
business and affairs of every foreign insurance corporation 
doing business in this state, as of domestic insurance corpo¬ 
rations. doing the same kind of business, and of its assets, 
books, accounts and general condition. Every such foreign 
corporation and its agents and officers shall always be sub¬ 
ject to and be required to make the same statements and 
answer the same inquiries and be subject to the same exami¬ 
nations, and, in case of default therein, to the same penalties 
and liabilities as domestic insurance corporations doing the 
same kind of business, or any of the agents or officers thereof, 
are or may be liable to under the laws of this state or tin* 
regulations of the insurance department. The commissioner 
may, whenever he deems it necessary, either in person or by 
a proper person appointed by him, repair to the general office 
of such foreign corporation, wherever the same may be, and 
make an investigation and examination of its affairs and 
condition. He may cancel and revoke the certificate of any 
such foreign corporation refusing or unreasonably neglecting 
to comply with the provisions of this section, or to allow 
the examination herein provided for to be made, and prevent 
such corporation from further continuance in business in this 
state. No such corporation shall transact any business in 
this state not specified in the certificate of authority granted 
by the commissioner. 




LAWS RELATING TO INSURANCE. 


37 


(70) Sec. 4. That every insurance company, or associa- Resident 
tion, not organized under the statutes of this state shall attorne y- 
also, as a condition precedent to doing business in this state, 
appoint an agent or attorney, resident herein, upon whom 

illl lawful process against the company may be served with 
the like effect as if served upon the company in the manner 
provided by law, and said appointment shall stipulate and Service of 
agree, on the part of the company making the same, that process upon - 
service of lawful process against such company upon such 
agent or attorney shall be valid service upon such company; 
and shall likewise file with the commissioner of insurance written 
its irrevocable written stipulation, duly authenticated by the stipu,atlon - 
company, stipulating and agreeing that any legal process 
affecting such company, served on the insurance commissioner 
or his deputy, shall have the same effect as if personally 
served on the company or its authorized attorney in this 
state. A copy of such appointment of an attorney or agent Copy of ap- 
duly authenticated, shall be filed with the commissioner of S™er™flfed. 
insurance and shall not be revoked until the same power is 
given to another resident and a like copy filed as aforesaid. 

Service upon such agent or attorney or the insurance commis¬ 
sioner shall be deemed sufficient service upon the company. 

See McLaughlin v. Aetna Life Ins. Co., 221 / 484. 

(71) Sec. 5. No foreign life insurance company shall be Deposit 

iit liberty to transact the business of life insurance within f^ U or ed ° f 
this state and no foreign insurance company shall be at casualty 
liberty to transact the business of casualty insurance within company - 
this state until such company, in addition to the require¬ 
ments now made by law, shall have deposited with the state 
treasurer at least one hundred thousand dollars, or in case of health and 
of a foreign company organized to insure on the monthly j^ideia on^ 
payment premium plan any person or persons against bodily ment plan!' 
injury or death by accident and against disability on account 
of sickness, at least twenty-five thousand dollars, of the like 
securities required to be deposited by similar domestic com¬ 
panies formed under or subject to this act, which shall be 
held as security for any loss suffered by policy-holders of 
said company or companies, upon the same terms and condi¬ 
tions and with the same authority of sale or collection to 
satisfy judgments as are set forth in this act with respect to 
domestic companies: Provided, however, That when, by the proviso, 
statutes of any other state, life insurance companies and n reqm°e<^ 
casualty insurance companies organized or doing business 
therein are required to keep on deposit with the state 
treasurer, commissioner of insurance or other state officer 
securities for the protection of policy-holders generally and 
any such company shall furnish to the commissioner of in¬ 
surance of this state the certificate of the proper officer of 
such state, showing the amount and character of the securi¬ 
ties so deposited with him, and it shall appear therefrom 
that the said securities are equal in market value and avail¬ 
ability to one hundred thousand dollars and that a portion 




38 


STATE OF MICHIGAN. 


Proviso, 

idem. 


Proviso, 
companies 
under foreign 
governments. 


thereof equal in market value to fifty thousand dollars is 
of stocks or bonds of the United States, or of this state, 
or of any city or county in this state authorized by law to 
issue the same, or of state, county or city bonds or of stocks 
of the state where such company or association is organized, 
or of bonds or mortgages on improved real estate worth 
double the sum loaned thereon, and it shall further appear 
from the laws of such state that the securities so deposited 
are subject to be made available to satisfy judgments of 
policy-holders in any manner corresponding to that provided 
for the care of securities deposited under this act, the com¬ 
missioner of insurance shall thereupon be authorized to issue 
to such company, subject to the provisions herein relating 
to applications, an authority or license to transact the busi¬ 
ness of life insurance or casualty insurance, as the case may 
be, within this state without any such deposit of securities 
with the state treasurer of this state as is above provided: 
Provided further, That when, by the statutes of any other 
state, casualty insurance companies doing business therein 
or organized to insure on the monthly premium payment plan 
any person or persons against bodily injury or death by 
accident and against disability on account of sickness with 
the capital stock of not less than twenty-live thousand dollars 
are required to keep on deposit with the state treasurer, 
commissioner of insurance or other state officer securities 
for the protection of policy-holders generally, and any such 
company shall furnish to the commissioner of insurance of 
this state the certificate of the proper officer of such state 
showing the amount and character of the securities so 
deposited with him, and it shall appear therefrom that the 
said securities are equal in market value and availability 
to twenty-five thousand dollars and that a portion thereof 
equal in market value to twelve thousand five hundred dollars 
is of stock or bonds of the United States, or of this state, 
or of any city or county in this state authorized by law to 
issue the same or of state, county or city bonds, or of stocks 
of the state where such company or association is organized, 
or of bonds or mortgages on improved real estate worth 
double the sum loaned thereon, and it shall further appear 
from the laws of such state that the securities so deposited 
are subject to be made available to satisfy judgments of 
policy holders in any manner corresponding to that provided 
for the care of securities deposited under this act, the com¬ 
missioner of insurance shall thereupon be authorized to issue 
to such company, subject to the provisions herein relating 
to applications, an authority or license to insure on the 
monthly payment premium plan any person or persons 
against bodily injury or death by accident and against dis¬ 
ability on account of sickness within this state without any 
such deposit of securities with the state treasurer of this 
state as is above provided: Provided further, That such 
insurance companies organized under the laws of any foreign 
government may be required to keep on deposit with the 



LAWS RELATING TO INSURANCE. 


39 


state treasurer of this state, or with some state officer of 
one of the United States, or with trustees for the. benefit of 
policy-holders resident in the United States, said trustees 
being residents or corporations of this or some other state, 
securities in which any such company is authorized to invest 
to an amount at least equal to the net value of the policies 
issued by said company to residents of these United States 
as computed by the commissioner of insurance. 

Am. 1919, Act 227. 

(72) Sec. 6 . That when by the statutes of any other Any mutual 
state any mutual company thereof is authorized to engage when any ’ 
in the business of employer’s liability insurance, and such admitted to 
company shall have entered into agreements for insurance, Habnity loyer 
with at least twenty-five applicants covering a payroll of not insurance - 
less than an aggregate annually of two and one-half million 
dollars, and shall have contingent assets of not less than two 
hundred thousand dollars, and not less than twenty thousand 
dollars in addition thereto, either of cash on deposit or 
securities of equal value immediately convertible into cash, 

and such company shall be confining its business to the risks 
of one class of industry or trade having common interests 
of trade relationships and common hazards, such company, 
upon complying with the provisions of this chapter with 
relation to application for admission, may be admitted to do 
such employer’s liability insurance in this state. It shall Mutual 
be lawful for any mutual liability company organized under companies, 
the laws of any other state, being possessed of at least five 
hundred thousand dollars of actual net cash assets to transact 
the business of employer’s liability insurance in this state, 
upon complying with all other provisions of this act relative 
to the operation of foreign life and casualty companies trans¬ 
acting liability insurance in this state and to provisions of 
this chapter with relation to the application to be admitted 
into this state. 

(73) Sec. 7. Any mutual fire insurance company or- Mutual fire 
ganized under the laws of any other state, possessed of not S^Ipon 
less than two hundred thousand dollars in premium notes mills, 

(face value) to solvent parties and not less than ten thousand 
dollars, either of cash on deposit or securities immediately 
convertible into cash for that amount, which would or shall 

limit its business to the class of risks hereinafter named, may 
be admitted to take risks upon mills, factories, and their 
accessories, such as elevators, warehouses, lumber yards, 
stores, and other property forming a part of such manufac¬ 
turing property, and transact such business in this state, 
and any mutual insurance company organized under the laws Any mutual 
of any other state possessed of not less than one hundred Ssupon 
thousand dollars in premium notes (face value) of solvent retail impie- 
parties and not less than ten thousand dollars, either of cash hardware, 
on deposit, or securities immediately convertible into cash 
for that amount, which would or shall limit its business to 
the class of risks hereinafter named, may be admitted to 




40 


STATE OF MICHIGAN. 


Provisions 

applicable. 


Fire or 
lire and 
marine, 


Security of 
policy¬ 
holders. 


take risks upon buildings occupied as retail implement or 
hardware stores or warehouses, and on the stocks therein 
contained, including such goods and merchandise as are 
usually kept for sale by retail hardware or implement deal¬ 
ers, on complying with the provisions of this act applicable 
to mutual fire insurance companies organized under chapter 
one of part four of this act, and subject to the provisions 
made herein as to foreign insurance companies generally. 

(74) Sec. 8. That whenever any fire or fire and marine 
insurance company, corporation, association, partnership, or 
conditions of individuals incorporated by or under the laws of any foreign 
admittance, government shall have securities deposited in any state of 
the United States, in accordance with the laws thereof, for 
the sole benefit and security of the policy-holders of such 
company or corporation residing in the United States, to the 
amount of two hundred thousand dollars, and shall make 
and execute, under oath, a report of its financial standing, 
and of such securities, attested by the trustees thereof, which 
trustees shall be actual residents of the United States, 
together with a full statement of the business of such insur¬ 
ance company or corporation in the United States for the 
year next preceding such statement, in the same manner and 
form and at the same time as is now required by law of insur¬ 
ance companies of other states of the United States; then and 
in that case it shall be lawful for the commissioner of insur¬ 
ance to issue to such insurance company or corporation 
a certificate of authority to transact the business of fire or 
fire and marine insurance in this state, subject to the laws 
Proviso. thereof: Provided, That such securities so deposited are 
made available to the citizens of this state, under the laws 
of the state in which said securities are deposited. In 
estimating the financial standing of such companies or cor¬ 
porations, such deposit of two hundred thousand dollars 
what deemed shall be considered the cash capital of the company. The 
legal officers. mana g e rs, resident directors, resident secretary, or general 
agents for the United States shall, for the purposes hereof, be 
deemed the legal and proper officers of such insurance com¬ 
pany or corporation, and such company or corporation shall 
file with said insurance commissioner its consent thereto. 


Estimating 

financial 

standing. 


Prussian Nat’l Ins. Co. v. Eisenhardt, 153 / 198. 

“Lloyds” (75) Sec. 9. That whenever any number of individuals, 

P lan - citizens of the United States, associating themselves within 

this state or elsewhere for the purpose of doing an insurance 
business upon the plan known as “Lloyds,” whereby each 
becomes liable for a proportionate part of the whole amount 
Deposit. insured by a policy executed by them, shall deposit with any 
Approval. bank or trust company of the United States, approved by 
the commissioner of insurance of this state, two hundred thou¬ 
sand dollars in cash or securities, approved by the commis¬ 
sioner of insurance, for the security and benefit of the liold- 
Report. ers of policies issued by them, and shall cause a report to be 
made under oath of their financial standing, and of the 



LAWS RELATING TO INSURANCE. 


41 


character and the value of the securities constituting the two 
hundred thousand dollars aforesaid, which report shall be 
attested by the general manager or attorney in fact of said 
individuals, in the same manner and form and at the same 
time as is herein required of insurance corporations 
organized under the laws of other states or countries, then 
and in that case the commissioner of insurance shall issue 
to said individuals under the associate name which they may 
or shall adopt, a certificate of authority to transact the busi- Certificate of 
ness of insurance, in this state, subject to the laws of this authority - 
state governing fire insurance companies of this and other 
states authorized to do business in this state. No associa- Maximum 
tion of underwriters authorized to do business in this state single nsk * 
on the Lloyds plan shall expose themselves to loss on any one 
risk to an amount in excess of one-fifth of their cash and 
invested assets including therein the underwriting liability 
of the individual underwriters, unless any excess shall be 
promptly reinsured by said underwriters. 

(76) Sec. 10. It shall be lawful for such insurance Automobile 
company organized under the laws of any other state and whe£ ance ’ 
authorized by law to transact the business of insuring motor may d0 - 
cars and other vehicles against loss or damage by fire, loss or 
damage while being transported in any conveyance by land 

or water, loss or damage by theft, robbery or pilferage, loss 
or damage sustained by collision with any object, moving or 
stationary, and loss or damage done to property by such 
motor cars and other vehicles through the operations thereof, 
to do the business of insuring automobiles and other vehicles 
against the hazards herein enumerated only in this state 
with the consent of the commissioner of insurance of this 
state, upon filing the statements, making the applications 
and complying in all respects so far as applicable with the 
provisions herein relating to foreign fire insurance companies. 

(77) Sec. 11. That no fire, fire and marine, or marine Fire, marine, 
and inland insurance company or association not organized fnce. insur ' 
under the laws of this state shall be permitted to do business 
therein under the provisions of this act, until it has filed To file 
with the commissioner of insurance an undertaking, duly undertakln s- 
executed and authenticated by the company, in such form 

as the commissioner of insurance shall from time to time 
prescribe; that it will not directly or indirectly enter into 
any contract, agreement, arrangement or undertaking of any certain 
nature or kind whatever with any other company, companies, pfohfStedf 
association or associations, the object or effect of which is 
to prevent open and free competition between it and said 
company, companies, association or associations, or the 
agents of their respective companies or associations in the 
business transacted in this state, or in any part thereof. 

(78) Sec. 12. No fire, fire and marine, or marine and Compact by 
inland insurance company or association not organized under p?S§b!ted. 
the laws of this state, but doing business therein, shall either 
directly or indirectly enter into any contract, agreement, 
arrangement, or undertaking of any nature or kind whatever 





42 


STATE OF MICHIGAN. 


Compact by 
agents pro¬ 
hibited. 


Unlawful 

solicitation. 


Names not to 
be similar. 


Solvency a 
condition to 
admittance or 
renewal. 


Foreign life 
or casualty 
on coopera¬ 
tive assess¬ 
ment plan. 


Rppin**ocal 

provision. 


with any other company, companies, association or associa¬ 
tions, the object or effect of which is to prevent open and free 
competition between it and said company, companies, associa¬ 
tion or associations, or between the agents of their respec¬ 
tive companies or associations in the business transacted in 
this state, or in any part thereof. 

What constitutes a Michigan contract.—Dolan v. Sup. Coun. C. M. B. A., 152 / 266. 

( 79) Sec. 13. It shall not be lawful for the agent of any 
lire, fire and marine, or marine and inland insurance company 
or association not organized under the laws of this state, 
but doing business therein, to enter into any contract, agree¬ 
ment, arrangement, or undertaking of any nature or kind 
whatever with the agent of any other such company, com¬ 
panies, association or associations, the object or effect of 
which is to prevent free and open competition between the 
companies or associations represented by said agents in the 
business transacted in this state, or in any part thereof. 

(80) Sec. 14. It shall not be lawful for any person or 
persons as agent, solicitor, broker, surveyor, or in any other 
capacity, to transact or to aid in any manner, directly or 
indirectly, in transacting or soliciting within this state, 
business for any fire, fire and marine or marine and inland 
insurance company or association not incorporated by the 
laws of this state, or in any other capacity to procure or 
assist to procure a fire or inland marine policy or policies of 
insurance in any company or association which is violating 
the provisions of sections twelve or thirteen of this chapter, 
or whose agent or agents are violating the provisions of 
section thirteen hereof. 

(81) Sec. 15. No foreign insurance company shall be 
admitted to do business in this state whose name is the same 
as or closely resembles the name of any other company 
organized under or admitted to do business under the laws of 
this state. No foreign insurance company shall be admitted 
to do business in this state nor given renewed certificates of 
authority, that is not and does not continue to be solvent. 

A foreign corporation doing business in Michigan is rmt an organization of this 
state, within the prohibition of this section.—People v. Home Life Assurance Co., 
111 / 405; Great Hive v. Supreme Hive, L. O. T. M., 135 / 392. 

(82) Sec. 16. No corporation or association organized 
or doing business under or by virtue of the laws of any other 
state or territory of the United States or District of Columbia, 
or foreign country, for the purpose of insuring life or 
furnishing sickness or accident indemnity, upon the co-opera¬ 
tive assessment plan, shall be authorized to do business in 
this state, unless the state or territory of the United States 
or District of Columbia, or foreign country, under whose 
laws such corporation or association is organized, shall ex¬ 
tend the right to such corporations in this state to do busi¬ 
ness in such state or territory of the United States or 
District of Columbia, or foreign country, upon similar condi 



LAWS RELATING TO INSURANCE. 


43 


tions to those in this act prescribed. Every foreign co-opera- valuation 
tive company insuring life shall have its business valued and of'cooperi 68 
shall maintain reserves as required of fraternal beneficiary ti ^ ie 1 s ife com ' 
societies under sections twenty-three and twenty-three-a of panles ‘ 
chapter four, part three, of this act. 

(83) Sec. 17. Taxation of foreign insurance compa- Taxes, 
nies. Every foreign insurance company, of the classes herein 
enumerated, admitted to do and doing any insurance busi¬ 
ness in this state, shall, as a condition precedent to the 
privilege of doing business, pay to the treasurer of the state when to pay. 
of Michigan, on the first day of January, of each year, or 

within sixty days thereafter, (subject to the retaliatory pro- Retaliatory 
visions herein before provided) a tax upon its said business provlslons - 
written in this state under the authority of the commissioner 
of insurance hereof, for the year ending December thirty-one, 
of the preceding year, computed as follows: 

First, Old line legal reserve life insurance companies, Life, 
whether organized on the stock or mutual plan, a tax of two 
per centum on the gross premiums; 

Second, Mutual workmen’s compensation companies, and Casualty, 
casualty companies having a capital stock, a tax of two per 
centum on all premiums, deducting for premiums returned 
on cancelled policies, and reinsurance premiums received 
when the tax has been paid on the original premium; 

Third, Fire, marine and automobile insurance companies, Fire, 
whether stock or mutual, three per centum, on all premiums, 
deducting for returned premiums on cancelled policies and 
reinsurance when the tax has been paid on the original pre¬ 
miums; and in mutuals also deducting for dividends paid 
to members. 

Such specific taxes shall be in lieu of all other taxation, 
whether state or local, excepting for real estate owned by 
such companies within this state and securities deposited 
herein unless exempted under the general tax laws of the 
state. No certificate of authority shall be granted to any Delinquents, 
insurance company or to its agents as such, that is delinquent 
in the payment of the taxes or penalties prescribed in this 
act. It is hereby required that all such companies which are Agent’s 
represented by agents in this state, shall pay to this state an llcense Re¬ 
agent’s license fee of two dollars for each such agent, meaning 
thereby each person acting as an agent, and each individual 
of a corporation, partnership or firm, which shall be licensed 
agreeable to the provisions of chapter three, part two of this 
act. All such license fees are hereby appropriated to the gen¬ 
eral fund of the state. 

Am. 1623, Act 91. 

F'or retaliatory provisions above referred to, see section 18. See section 329 
for tax provisions under the general mutual law. 

(84) Sec. 18. Each foreign insurance company admitted Tax state- 
to do any insurance business in this state, and subject to any ment 
tax prescribed in this chapter, shall annually, on the first 

day of January, or within forty-five days thereafter, make 
and file with the commissioner of insurance of this state, its 




44 


STATE OF MICHIGAN. 


Commissioner 
to compute 
taxes. 


Failure to 
file, etc. 


Collection of 

delinquent 

taxes. 


Penalty. 


Taxation 

premiums 

defined. 


Tax receipts. 


statement showing all of the data necessary to a computa¬ 
tion of its taxes under this chapter, upon such forms and 
including such information as th*e said commissioner may 
prescribe. It shall thereupon be the duty of such commis¬ 
sioner to compute such taxes, and deliver one copy thereof 
to the state treasurer and one copy to such insurance com¬ 
pany. The failure to file such statement with the commis¬ 
sioner of insurance, or his failure to compute such tax or to 
deliver such computation, shall not, however, excuse or re¬ 
lieve any company from the payment of such tax as is justly 
due. 

(85) Sec. 19. The taxes herein prescribed may be col¬ 
lected, in case of delinquency, by the state treasurer, out 
of any moneys or by the sale of any securities, deposited 
with him by such delinquent company, or if no securities or 
moneys are deposited, by a suit in any court of competent 
jurisdiction as for the collection of a debt to the state, and 
in any such suit, the computation of the insurance commis¬ 
sioner, duly sworn to, shall be prima facie evidence of the 
amount thereof. 

(86) Sec. 20. Every foreign insurance company, from 
whom any tax is due, and delinquent, and having no deposit 
with the state treasurer, shall be liable to a penalty of ten 
dollars for each and every day of such delinquency from and 
after the first day of March thereafter, which penalty shall 
be added to the tax and collected in the same manner as 
the tax herein provided for. 

(87) Sec. 21. The taxes on premiums from insurance 
companies shall be upon the premiums which, during the 
year or part of the year ending on the preceding thirty-first 
day of December, shall have been received by any insurance 
company, or by any person acting as agent therefor, both 
upon policies issued by agents in this state, or policies 
issued at the office of the companies, upon application of sub¬ 
agents or others, or for any individuals or association of 
individuals, not incorporated or authorized by the laws of 
this state, to effect insurance against fire, inland, marine, 
life, casualty, or other risks, or which shall have been re¬ 
ceived by any person for such company or agent, or shall have 
been agreed to be paid for any insurance effected, or agreed 
to be effected or procured by such company or agent, or 
against fire, inland, marine, life, casualty, or other risks, 
although such companies, associations, or individuals may 
be incorporated or authorized for that purpose by the laws 
of any other state of the United States, or of any foreign 
government. The state treasurer, on receiving such tax from 
any company shall issue therefor duplicate receipts, one of 
which he shall deliver to the company, and the other shall 
be filed with said commissioner. 



LAWS RELATING TO INSURANCE. 


45 


CHAPTER III.—INSURANCE AGENTS . AND ADJUSTERS. 

Sub-Division One—Agents. 

(88) Section 1. A general, district, state or special General 
agent is hereby defined to be a person, firm or corporation asent deflned * 
acting under authority from any insurance company, to 
supervise and appoint agents, inspect risks, and otherwise 
transact business for and as a representative of such insur¬ 
ance corporation. No such general, district, state or special Non-resident 
agent not actually residing in this state shall countersign agents - 
any policy or be paid any commission or compensation for 
solicitation based upon the premium received. An agent is Resident 
hereby defined as a person, firm or corporation acting under a s ent s defined ’ 
written authority from any insurance company to solicit P 
insurance and or write and countersign policies of insurance 

and collect premiums therefor. A solicitor is hereby defined solicitor 
as any person acting under express authority from an agent, defined - 
having authority to appoint solicitors, to solicit insurance 
for such agent, but without the power or authority to issue 
or countersign policies or otherwise bind any company of 
which such agent may be the duly authorized representative. 

PRINCIPAL AND AGENT.—Gore v. Canada Life Ins. Co., 149 / 562; Moloney 
v. Germania Fire Ins. Co., 168 / 272; Vandervliet v. The Standard Accident & 

Ins. Co., 209 / 146. 

For court decisions under the subject of agents, see respective chapters relating 
to the several forms of insurance. 

(89) Sec. 2. Any general, district, state or special agent License for 
may represent any insurance company in such capacity when ®^® rvision 
the commissioner of insurance has issued, and such agent is 

in possession of, a license authorizing such agent to represent 
such insurance company within the state of Michigan. Such 
license shall be issued only on the requisition of an executive 
officer or head of a department of such insurance company, 
if it be organized under the laws of any state of the United 
States, or of the United States manager of any foreign insur¬ 
ance company. It shall not be required that such agent be a 
resident of this state. 

(90) Sec. 3. It shall be lawful for any person, firm or when lawful 
corporation to act as agent for any insurance company when to act - 

a license shall have been issued to him or it to act as such 
agent, by the commissioner of insurance, which license shall 
set forth the name of the person, firm or corporation so 
authorized to act as such agent, and the name of the com¬ 
pany for which the agent is authorized to act. Licenses for License 
agents shall be issued only to persons who are actual residents Sdent 0 
of this state, or to corporations of this state, a majority of agents only, 
whose board of directors and executive officers shall be 
residents thereof. Such licenses may be issued on requisition how issued. 



46 


STATE OF MICHIGAN. 


Proviso. 


What to 
designate. 


Solicitor 
employment 
of, etc. 


Fee. 


To procure 
license. 


Appointment 
of agents. 


Proviso, 
employment 
of attorney. 


Insurance of 
risks pre¬ 
viously 
refused. 


Proviso. 


signed by an executive officer or head of a department of the 
insurance company for which the agent is empowered to act: 
Provided, That the authority to make requisitions for agents* 
licenses may be delegated to the general, district, state or 
special agents of such insurance company, such delegation to 
be in writing signed by an executive officer or head of a 
foreign corporation, and filed in the office of the commissioner 
of insurance. When such a license shall be issued to any 
firm or corporation, it shall designate the members of such 
firm or the officers of such corporation who shall be empowered 
to act thereunder, and only one such license shall be required 
for any firm or corporation. 

(91) Sec. 4. Any agent duly authorized as such, and 
representing one or more insurance corporations may employ 
such solicitors as he may desire to represent him and his 
agency. Such solicitors shall not represent themselves, by 
advertisement or otherwise, as agents of insurance companies 
for which their employer may be the authorized agent, and 
such solicitors shall in all instances represent themselves 
only as solicitors for said authorized agent. The fee for each 
solicitor’s license shall be ten dollars. The issuance of a 
solicitor’s license shall be limited to persons who shall be 
residents of the state of Michigan. 

(92) Sec. 5. Hereafter, it shall not be lawful for any 
person to act in this state as general, district, state agent, 
agent, solicitor, or otherwise, in procuring or receiving 
applications or in any manner directly or indirectly to aid in 
transacting any business for or in behalf of any insurance 
company, corporation or association authorized to transact 
business within this state, until he shall have procured from 
the commissioner of insurance a license as herein provided. 
Nor shall it be lawful for any insurance company, corporation 
or association to appoint or employ any general, district, 
state or special agent or directly or indirectly to authorize 
any person to transact any insurance business or in any 
manner to receive the benefit of any business done or services 
rendered by any such agent or person within this state in any 
other manner than as herein provided: Provided, however, 
That the terms of this sub-division shall not extend to, in¬ 
clude or prohibit the employment of or the acting by any 
attorney-at-law for or in behalf of any client by whom he shall 
have been retained. 

(93) Sec. 6 . Any authorized agent of an insurance 
company transacting business in this state shall have the right 
to procure the insurance of risks or parts of risks, that have 
been refused by companies represented by him in other like 
companies duly authorized to transact business in this state, 
but such insurance shall only be consummated through a duly 
licensed resident agent of the company taking the risk: 
Provided, however, That nothing herein contained shall be 
deemed to authorize the conducting of any insurance brok¬ 
erage business in this state. 



LAWS RELATING TO INSURANCE. 


47 


(94) Sec. 7. The provisions of this sub-division shall 
apply only to insurance companies transacting business on a 
stock plan, and to all mutual or co-operative life and health 
and accident companies, except fraternal beneficiary societies. 

(95) Sec. 8. The commissioner of insurance shall have 
power after a hearing to refuse to grant any license requested 
under the provisions of this sub-division should he be satisfied 
that the person, firm or corporation for whom the requisition 
is made is not a proper or fit person, firm or corporation 
to be permitted to transact such business within this state, 
and the commissioner of insurance shall at once notify the 
insurance company or agent making such requisition of his 
refusal to issue the license and the reason therefor. The 
commissioner of insurance shall have the power to revoke 
for cause shown and upon hearing given to all parties 
concerned, any license issued by him under the provisions 
of this sub-division: Provided, That any action taken by 
the commissioner under the provisions of this section shall 
be subject to review by any court of competent jurisdiction. 

(96) Sec. 9. Nothing in this sub division shall be held 
to extend to or include any clerical help that may be neces¬ 
sary in performing any of the functions provided for agents, 
general, district, state or special agents nor to require such 
clerical help to be licensed in the same manner as their 
employers. No such clerical help shall solicit the business 
unless licensed as an agent or solicitor. 

(97) Sec. 10. No license shall be granted under this 
sub division until the person, or if a firm or corporation, 
then the persons representing the firm or corporation for 
which requisition is made, shall have filed with the commis¬ 
sioner of insurance an application duly signed and verified 
by him, which application shall be in the following form, 
to-wit: 


To the Commissioner of Insurance of the State of Michigan: 
I hereby make application for a license to represent the 

.. • • ] Ag™n C y ny |.- and make the following 

statement on oath: 

First, I will not knowingly violate any of the insurance 
laws of this state during the term of the license applied for, 


if issued; 

Second, I will not knowingly deceive any applicant for 
insurance, or misrepresent any of the terms or conditions 
of any insurance policy or the financial responsibility of any 
insurance company; 

Third, I will not persuade or attempt to persuade by any 
incomplete comparison or misrepresentation, any person to 
discontinue any insurance that he may have with any com¬ 
pany or association during the term of such insurance for the 
purpose of taking insurance in any like company or associa¬ 
tion that I may represent; 

Fourth, During the past year I have represented the fol¬ 
lowing companies: 


Provisions to 
apply. 


Refusal to 
issue license. 


Proviso, 

review. 


Clerical help 
not to solicit. 


Application 
for license. 


Form. 






48 


STATE OF MICHIGAN. 


Penalty on 
person. 


Suspension 

authority. 


Penalty on 
company. 


Revocation 

authority. 


Fifth, I am not indebted to any. insurance company or 
general agent by virtue of any contract as former agent 
except as follows: 


Sixth, I have had.years experience in the .... - 

insurance business and have lived in Michigan for the past 
. years; 

Seventh, I expect to devote my time.to the 

insurance business; 

Eighth, In what other business are you engaged and in 
what capacity? (Explain fully.) 

Mnth, I have never had a license refused or revoked by 
the department of insurance of this or any other state. 
Except...; 

Tenth, I understand that it is against the laws of this 
state: 

(a) To act as an insurance agent or solicitor without a 
license from the department of insurance ; 

(b) To misrepresent the conditions of any policy; 

(c) To estimate future dividends that may be paid by a 
company; 

(d) To make any discrimination between citizens of this 
state or to rebate any part of the premium or commission 
or offer any valuable consideration as an inducement to take 
insurance other than that clearly expressed in the policy; 

(e) To twist or attempt to twist insurance policies by 
misrepresentation and or unfair comparisons. The commis¬ 
sioner of insurance shall have authority to address any addi¬ 
tional inquiries to such applicant and the entire applica¬ 
tion shall be sworn to and signed by the applicant. 

(98) Sec. 11. Any person violating any of the foregoing 
provisions of this chapter, shall, upon conviction thereof, be 
punished by a fine of not more than one hundred dollars, or 
by imprisonment in the county jail for not more than ninety 
days or by both such fine and imprisonment in the discretion 
of the court; and upon the conviction of any agent, state or 
special agent, or solicitor, of any violation of the provisions 
of of this act, the commissioner of insurance shall suspend the 
authority of such agent, state or special agent, or solicitor, 
to transact any insurance business within the state of 
Michigan for a period of not less than three months; any 
insurance company employing an agent, state or special agent, 
and failing to procure a license required by this chapter, or 
permitting such agent, or state or special agent, to transact 
business for it within the state before such certificate has been 
procured, shall pay to the commissioner of insurance for the 
use of the state a penalty of twenty-five dollars for each 
offense, and in the event of failure to pay such penalty within 
of ten days after notice from the commissioner of insurance, the 
authority of such company shall be revoked by the commis¬ 
sioner of insurance until such penalty is paid, and no such 















LAWS RELATING TO INSURANCE. 


49 


company shall be readmitted until it shall have complied with 
all the terms and conditions imposed for admission in the 
first instance: Provided, That any action taken by the com- Proviso, 
missioner of insurance under the provisions of this section review * 
shall be subject to review by any court of competent jurisdic¬ 
tion. 

(99) Sec. 12. All licenses issued by the commissioner Term of 
of insurance under any of the foregoing provisions of this license - 
chapter shall expire on the last day of February of each year 
and may be renewed by the commissioner of insurance under 
the same terms and conditions and upon the payment of the 
same fee as in the first instance, for one year, and from year 
to year: Provided, however, That the commissioner of insur- Proviso, 
ance in his discretion, may omit the requirement provided for 
in section ten of this chapter, of the filing of the information 
as to the agent. Where such information has not been Renewal, 
required by the commissioner upon the renewal of the license, 
it shall be lawful for the commissioner at any time to require 
from any company represented by such agent full information 
as to such agent covering the several matters provided for in 
section ten of this chapter, and upon refusal of any company 
to furnish such information as is required by the commis¬ 
sioner, forthwith, the license shall stand revoked. The com¬ 
missioner shall prescribe the forms required in this sub¬ 
division. 


- Sub-Division Two. 

(100) Sec. 13. That the commissioner of insurance, upon H ow agent 
the annual payment of a fee of twenty-five dollars may issue “a^write n 
licenses to residents of this state subject to revocation at Authorised " 
any time, permitting the person named therein to procure com P an v* 
policies of fire insurance on property in this state in foreign 
insurance companies not authorized to transact business in 
this state, but which are duly authorized to do business in 
other states having insurance commissioners. Before the Affidavit, 
person named in such license shall procure any such insurance what to state> 
he shall in every case execute and file with the commissioner 
of insurance an affidavit that he is unable to procure, in 
companies admitted to do business in this state, the amount 
of insurance necessary to protect said property, and shall 
only procure insurance under such license after he has 
procured insurance in companies admitted to do business in 
this state to the full amount which said companies are willing 
to write on said property: Provided, That such licensed proviso, cash 
person shall not offer any portion of such insurance to any assets - 
company which is not possessed of cash assets amounting to 
at least one hundred thousand dollars, nor one which has, 
within the preceding twelve months been in an impaired 
condition. Each person so licensed shall keep a separate Account of 
account of the business done thereunder, a certified copy of ^t'^ show, 
which he shall forthwith file with the commissioner of insur- etc. 
ance showing the exact amount of such insurance placed for 



50 


STATE OF MICHIGAN. 


Bond of 
licensee. 


Approval. 


Statement 
gross pre¬ 
miums. 


Fire and < 
pensation 
adjusters. 


Certificate 

authority. 


Fee not to 
apply to 
agents. 


Suspension 

revocation. 

Notice. 


any person, firm or corporation, the gross premium charged 
thereon, the companies in which the same is placed, the date 
of the policies and the term thereof, and he shall also file a 
report in the same detail of all such policies cancelled and 
the gross return premiums thereon. 

See also section 128 . 

(101) Sec. 14. Before receiving such license he shall 
execute and deliver to the auditor general a bond in the penal 
sum of two thousand dollars with such sureties as the said 
auditor general shall approve, with a condition that the 
licensee will faithfully comply with all the requirements of 
this sub-division and will file with the commissioner of 

of insurance, in January of each year, a sworn statement of the 
gross premiums charged for insurance procured or placed, 
and the gross returned premiums on such insurance cancelled 
under such license during the year ending on the thirty-first 
day of December next preceding, and at the time of filing 
such statement will pay into the state treasury a sum equal 
to four per cent of such gross premiums less such returned 
premiums reported. Any such company with which such in¬ 
surance shall be placed shall appoint the commissioner of 
insurance of this state as its attorney in fact in this state, 
upon whom process can be served. 

Sub-Division Three—Adjusters. 

om- (102) Sec. 15. No person shall engage in the business 
of adjusting the loss or damage by fire or other hazard under 
any policy of insurance, nor engage in the business of 
adjusting claims for compensation under act number ten of 
the public acts of nineteen hundred twelve, first extra session, 
and acts amendatory thereof, for companies carrying work¬ 
men’s compensation insurance, or advertise, solicit business, 
or hold himself out to the public as such adjuster, without 
first procuring a certificate of authority to act as such 
adjuster from the commissioner of insurance of this state. 

of The commissioner of insurance shall issue such adjuster’s 
certificate of authority to any person applying therefor who 
is trustworthy and competent. Every person to whom such 
certificate is issued shall pay to the commissioner of insurance 
as a license fee therefor, the sum of two dollars. This section 
shall not apply to any licensed agent or employe of any 
underwriter admitted to do business in this state by whom 
a policy of insurance against loss or damage by fire shall have 
been written upon property within this state, in adjusting 
loss or damage under such policy, 
or (103) Sec. 16. Such license may be suspended or re¬ 
voked by the commissioner of insurance for fraud or serious 
misconduct on the part of any such adjuster. Before revok¬ 
ing the license of any adjuster under this sub-division, the 
commissioner shall give notice in writing to such adjuster 
of the charges of fraud or misconduct preferred against him, 
and shall give such adjuster full opportunity to be heard in 



LAWS RELATING TO INSURANCE. 


51 


relation to the same. Such license and certificate of au- Term of 
thority shall, unless otherwise suspended or revoked, be in license - 
force from and after the date of the same for a period of 
one year and may be renewed upon the expiration thereof, by Renewal, 
the commissioner of insurance, from year to year upon the 
payment of a fee of two dollars for each renewal. 

(104) Sec. 17. Any person, partnership, association or Violations, 
corporation or their agents or employes violating any of the 
foregoing provisions of this sub-division shall be deemed 
guilty of a misdemeanor, and upon conviction thereof shall Penalty, 
be punished by a fine of not more than one hundred dollars, 

or imprisonment in the county jail for not more than thirty 
days, or by both such fine and imprisonment in the discretion 
of the court. 

(105) Sec. 18. Any person who shall make any false or False state- 
misleading statement for the purpose of misleading or de- ments - 
ceiving any other person into believing that he is a public 
adjuster, or otherwise convey such impression by means of 
concealment of any fact, or who shall withhold a policy of 
insurance from the insured, before a full settlement is made, 

shall be deemed guilty of a misdemeanor, and upon conviction Penalty, 
thereof shall be punished by a fine not exceeding five hundred 
dollars or by imprisonment in the county jail not exceeding 
one year or by both such fine and imprisonment in the discre¬ 
tion of the court. 

Sub-Division Four—Insurance, Auditors, Abstractors, Counselors 

or Analysts. 

(106) Sec. 19. It shall not be lawful for any person, Auditors, 
firm or corporation in the state of Michigan to engage, or to ^tractors, 
advertise or to hold himself or itself out as engaged in the 
business of auditing or abstracting policies of life insurance 

or annuities, or of giving or affording any advice, counsel or 
opinion with respect to the benefits promised under any policy 
of life insurance or annuity issued or proposed to be issued 
by any company authorized to transact the business of life 
insurance in this state, or the terms, value, effect, advantages 
or disadvantages thereof, or, directly or indirectly, to take 
or receive any commission or other compensation or reward 
in money, or otherwise, or directly or indirectly to obtain or 
acquire any benefit or advantage in consideration of, return 
for, or as a result of, the auditing or abstracting of a policy 
of life insurance or annuity, or policies of life insurance or 
annuities, or the giving or affording of advice, counsel or 
opinion with respect thereto, or with respect to the plan of 
insurance of any such company, until a license shall have been License, 
issued to him or it by the commissioner of insurance issuing 
to him or it so to act. Such licenses may be issued by the 
commissioner for the period of one year and shall be renewed 
annually. The fee for each such license issued or renewed Fee. 
shall be ten dollars. 

(107) Sec. 20. No license shall be granted under this Application 
act until the person, or if it be a firm or corporation, then for license - 




52 


STATE OF MICHIGAN. 


Form. 


Refusal to 

grant 

license. 


Revocation. 


Proviso, 

review. 


Penalty for 
violation. 


Suspension 

authority. 


the person or persons representing such firm or corporation, 
applying therefor, shall have filed with the commissioner of 
insurance an application duly signed and verified by him or 
them, which application shall be in the following form, to-Avit: 
To the Commissioner of Insurance of the State of Michigan: 

I hereby make application for a license to audit and abstract 
policies of life insurance and annuities and to give counsel 
and advice with respect to such policies of life insurance 
and annuities, and the plans of insurance of corporations 
authorized to transact the business of life insurance in the 
state of Michigan, and make the following statement on oath: 

First, I will not knowingly violate any of the insurance 
laws of this state during the term of the license applied for 
if issued; 

Second, I will not knowingly deceive any applicants for 
insurance or misrepresent any of the terms or conditions of 
any policy of life insurance or annuity, or the financial 
responsibility or business practices of any life insurance 
company authorized to transact business in this state; 

Third, I will not upon the basis of any incomplete com¬ 
parison or misrepresentation, advise or persuade, or attempt 
to persuade any person to drop or discontinue any insurance 
that he may have with any company or association during 
the term of such insurance for the purpose of taking insurance 
in any like company or association, or otherwise. 

The commissioner of insurance shall have authority to 
address any additional inquiries to any such applicant, and 
the entire application shall be sworn to and signed by the 
applicant. 

(108) Sec. 21. The commissioner of insurance shall have 
the power after a hearing to refuse to grant any license 
requested under the provisions of this sub division, should he 
be satisfied the person, firm or corporation applying therefor 
is not a proper or fit person, firm or corporation to be per¬ 
mitted to engage in such business within this state. The 
commissioner of insurance shall have power to revoke for 
cause shown and upon hearing given to all parties concerned, 
any license issued by him under the provisions of this sub* 
division: Provided, That any action taken by the commis¬ 
sioner of insurance under the provisions of this section shall 
be subject to review by any court of competent jurisdiction. 

(109) Sec. 22. Any person violating any of the provisions 
of this act shall, upon conviction thereof, be punished by a 
fine of not more than one hundred dollars, or by imprison¬ 
ment in the county jail for not more than ninety days, or 
both such fine and imprisonment in the discretion of the 
court, and upon the conviction of any person, firm or corpora¬ 
tion licensed under this act, of any violation of the provisions 

of thereof, the commissioner of insurance shall suspend the 
authority of such person, firm or corporation to act under 
such license within the state of Michigan for a period of 
not less than three months. 



LAWS RELATING TO INSURANCE. 


53 


CHAPTER IV.—MISCELLANEOUS. 

Sub-Division One. 

(110) Section 1. It shall be unlawful for any corpora- unlawful 
l ion, foreign or domestic, to take, receive or solicit subscrip- contro1 of 
tions in this state for the capital stock of any insurance managemen • 
corporation or to take any part, directly or indirectly, in the 
formation of any insurance corporation for the purpose of 
controlling in any way the management thereof; and every 
contract, order or subscription for stock, made directly or 
indirectly, with such corporation, or any voting trust or other 
agreement hereafter made, the purpose of which is directly 
or indirectly to control such corporation, is hereby declared 
to be void. Any violation of this section shall be deemed a 
misdemeanor. 


Sub-Division Two. 

(Ill) Sec. 2. If any insurance corporation organized or Misrepre . 
operating within this state shall, by means of any advertise- sentation of 
ment, circular, notice or statement, printed or written, pub- stock? 1 
lislied, posted or circulated through and by the agency of dftfon a ete° n 
any officer, agent or other person, or by any other means, 
falsely represent or hold out to the public that the capital 
stock of such company is greater than its actual amount, or 
that the accumulation of such company is greater than its 
actual cash or market value, or shall represent the financial 
condition to be other than it actually is or was at the time 
of making such statement, every director or officer of such 
company guilty of any participation therein shall be deemed 
guilty of a misdemeanor and on conviction thereof shall be Penalty, 
punished by a fine not exceeding one hundred dollars, or by 
imprisonment in the county jail not exceeding three months, 
or by both such fine and imprisonment, in the discretion of 
the court; and if any such company, after such false adver¬ 
tisement, circular, notice or statement shall have been pub¬ 
lished, posted or circulated, shall receive any money, note or 
obligation for the payment of money, from any person, as a 
consideration for any insurance made or policy issued or to 
be issued by such company, such money, note or obligation 
shall be deemed and taken to have been received without 
consideration; and the directors of such company, and any Joint 
officer or agent receiving the same, shall be jointly and ^ i rectors 0f 
severally liable in an action of assumpsit for the repayment etc. 
thereof, and shall also, in like manner, be liable to the person 
insured for the amount of the insurance. Any such false 
advertisement, circular, notice or statement shall be sufficient 
ground for proceedings in any court of competent jurisdiction 



54 


STATE OF MICHIGAN. 


Proviso, when 
forfeiture not 
declared. 


Fraudulent 

reports. 


Forfeiture 
of franchise 
or license. 


Reserve or 
mortality 
funds, certain 
use unlawful. 


Penalty on 
officer or 
agent. 


Anti-rebate. 


to forfeit the chartered privileges of such company, or for an 
order prohibiting the further transaction of business by it 
within this state: Provided, That no such forfeiture shall 
be declared on that ground solely, if it shall appear either 
that the publication was by mistake, or that the directors, 
officers or agents making the same have been dismissed from 
the service of such company, and that the company has 
published such true statement of its affairs as may have been 
directed by the insurance commissioner, or such court. 

(112) Sec. 3. It shall be unlawful for any person in 
any report required by law to be made by any insurance 
corporation or fraternal beneficiary association, organized or 
authorized to do business in this state, to make any such 
statement or report as to fraudulently conceal the real facts, 
and if intentionally so made shall, if the company be organized 
under the laws of this state, be cause of forfeiture of the 
corporate franchise, and if the company be organized under 
the law T s of any other state or government, be cause for 
revocation of such company’s license to do business in this 
state by the commissioner of insurance, after hearing granted. 

(113) Sec. 4. It shall be unlawful for any officer or agent 
of a fraternal beneficiary or co-operative mutual life insur¬ 
ance company doing business in this state to appropriate or 
use any portion of the reserve or mortality funds of such 
association for any other purpose than such as the articles 
of association, by-law T s and contracts with members prescribe. 

(114) Sec. 5. Any officer or agent guilty of any such 
fraudulent statement or of any intentional violation of the 
provisions of this sub division, or who shall aid or abet others 
in any such violation, shall be deemed guilty of a misdemeanor 
and upon conviction thereof shall be punished by a fine not 
exceeding one thousand dollars, or by imprisonment not ex¬ 
ceeding six months, or by both such fine and imprisonment, in 
the discretion of the court. 

Sub-Division Three. 

(115) Sec. 6. No insurance company, association or 
society, by itself or any other party, and no insurance agent 
or solicitor, personally or by any other party, transacting any 
kind of insurance business shall offer, promise, allow r , give, 
set off or pay, directly or indirectly, any rebate of, or part of, 
the premium payable on the policy or on any policy, or agent’s 
commission thereon, or earnings, profit, dividends or other 
benefit founded, arising, accruing or to accrue thereon, or 
therefrom, or any other valuable consideration or inducement 
to or for insurance, on any risk in this state now r or hereafter 
to be written, which is not specified in the contract of insur¬ 
ance; nor shall any such company, association or society, 
agent or solicitor, personally or otherwise, offer, promise, 
give, sell, or purchase any stocks, bonds, securities or any 
dividend or profits accruing or to accrue thereon, or other 
thing of value whatsoever as inducement to insurance or in 



LAWS RELATING TO INSURANCE. 


55 


connection therewith which is not specified in the policy 
contract. Upon satisfactory evidence of the violation of the 
provisions of this section by any insurance company, associa¬ 
tion, or society, its officers, solicitors or agents, or any insur¬ 
ance broker, the commissioner of insurance shall revoke the Revocation of 
certificate of authority of such offending company, associa- certlflcate - 
tion or society, its officers, solicitors or agents; and no license 
or certificate of authority shall be issued to such company, 
association or society, officers, agents, solicitors or brokers, 
within one year from the date of the revocation of such 
license or certificate of authority. 

The buying of drinks of intoxicating liquor for defendants whom he was 
soliciting, by the agent of a life insurance company, where the defendants were 
sober and mentally normal, cannot be classed as a distinction or discrimination 
in favor of defendants within the purview and intent of the anti-rebate law 
(Act 181. P. A. 1907).—Northern Assurance Co. v. Meyer, 194 / 371. 

Revocation of certificate.—Life Ins. Co. v. Ins. Com’r, 128 / 85; See Am. Health 
& Accident Ins. Co. v. Com’r of Ins., 154 / 193. 

(116) Sec. 7. Misrepresentation and Twisting. No insur- Misrepre- 
ance company, association or society, or any officer, director, SVwisting. 
agent or solicitor thereof shall issue, circulate or use or 

cause or permit to be issued, circulated or used, any written 
or oral statement or circular misrepresenting the terms of 
any policy issued or to be issued by such company, or mis¬ 
representing the benefits or privileges promised under any 
such policy, or estimating the future dividends payable 
under any such policy. No insurance company, association 
or society, officer, director, agent or solicitor, or any person, 
firm, association. or corporation, shall make any misrepre¬ 
sentation or incomplete comparison of policies, oral, written 
or otherwise, to any person insured in any company for the 
purpose of inducing or tending to induce such person to take 
out a policy of insurance or for the purpose of inducing or 
tending to induce a policyholder in any company to lapse, for¬ 
feit or surrender his insurance therein, and to take out a 
policy of insurance in another like company. Upon satisfac¬ 
tory evidence of any violation of the provisions of this section 
by any insurance company, association or society, its officers, 
solicitors or agents, or any insurance broker, the commis- Revpcation of 
si oner shall forthwith revoke the certificate of authority of certlficate - 
such company, association or society, its officers, solicitors or 
agents, and no license shall be issued to such company, asso¬ 
ciation or society, officers, agents or solicitors, within one year 
from the date of the revocation of such license. 

(117) Sec. 8. Before any such certificate is revoked, as Notice to 
provided in sections six and seven hereof, the commissioner defendant - 
shall notify the holder thereof in writing of the complaint 
against him, and require such person on a date named, not 

l< ss than fifteen days after service of said notice, to appear Hearing, 
for a hearing before him at the insurance department, and 
such certificate shall not be revoked until after a full hearing 
or an opportunity therefor has been granted as herein pro¬ 
vided; and no such revocation shall take effect until ten 
days after such order has been made by the commissioner 



56 


STATE OF MICHIGAN. 


Review by 

supreme 

court. 


Unlawful to 
accept rebate, 
commission, 
etc. 


Deduction 
from policy. 


Misdemeanor. 


Penalty. 


Violation of 
provisions. 


Embezzle¬ 
ment by 
agents. 


and the holder thereof notified in writing of such action. 
Any such order may be reviewed by the supreme court if the 
appeal for such review is taken within the ten days imme¬ 
diately following the giving of the notice of the making of 
said order, and pending such appeal for review, such certifi¬ 
cate of authority shall be deemed to be in full force and 
effect and until the final determination of such appeal, but 
in case the order of revocation by the commissioner is sus¬ 
tained the period of such revocation shall date from the 
time such appeal is determined. 

(118) Sec. 9. No insured person or party shall receive 
or accept, directly or indirectly, any rebate of premium or 
part thereof, or agent’s, solicitor’s or broker’s commission 
thereon, payable on the policy, or on any policy of insurance, 
or any favor or advantage or share in the dividend or other 
benefit to accrue thereon, or any valuable consideration or 
inducement, not specified in the policy contract of insurance. 
The amount of the insurance whereon the insured has know¬ 
ingly received or accepted, either directly or indirectly any 
rebate of the premium or agent’s, solicitor’s or broker’s com¬ 
mission thereon, shall be reduced in such proportion as the 
amount or value of such rebate, commission, dividend, or 
other consideration so received by the insured bears to the 
total premium on such policy, and any person insured, in 
addition to having the insurance reduced, shall be guilty of 
a misdemeanor, and upon conviction thereof shall be sen¬ 
tenced to pay a fine of not more than one hundred dollars. 
Any insurance company, association or society, agent, solic¬ 
itor, or any person, firm, association, or corporation, vio¬ 
lating any of the provisions of sections six and seven hereof 
shall be guilty of a misdemeanor, and upon conviction thereof 
Hie offender or offenders shall be sentenced to pay a fine of 
not more than one hundred dollars for each and every viola¬ 
tion or in the discretion of the court, to imprisonment in the 
county jail of the county in which the offense is committed. 

Rebate of premium, see Heffron v. Daly, 133 /613. 

(119) Sec. 10. Embezzlement by Agents. Any money, 
substitute for money or thing of value whatsoever, received 
by any agent, solicitor or broker as premium or return pre¬ 
mium, on or under any policy of insurance or application 
therefor, shall be deemed to have been received by such agent, 
solicitor or broker in his fiduciary capacity, and any agent, 
solicitor or broker who embezzles, or fraudulently converts 
or appropriates to his own use, or, with intent to embezzle, 
takes, secretes or otherwise disposes of, or fraudulently with¬ 
holds, appropriates, lends, invests or otherwise uses or applies 
any money, substitute for money or thing of value received 
by him as premium or return premium on or under any 
policy of insurance or application therefor, contrary to the 
instructions or without the consent of the company, associa¬ 
tion or society, for or on account of which the same was 



LAWS RELATING TO INSURANCE. 


57 


received by him, shall be deemed guilty of larceny by embezzle¬ 
ment, and shall be punished as provided in the criminal Punishment, 
statutes of this state, irrespective of whether or not such 
agent, solicitor or broker has, or claims to have, any commis¬ 
sion or other interest in such money, substitute for money or 
thing of value. 


Sub-I)ivision Four. 

(120) Sec. 11. It shall be unlawful for any insurance Non-resident 
company legally authorized .to transact business in this agents - 
state, to write, place or cause to be written or placed, except 
through a duly licensed agent in this state, any policy or con¬ 
tract for indemnity or insurance in this state, in or through 

any such legally authorized company outside of the state of 
Michigan: Provided, That nothing in this chapter Contained proviso, 
shall be construed to prevent any insurance company which 
has lawfully issued a policy of insurance through its resi¬ 
dent agent within this state from reinsuring said risk or any 
portion t hereof in any authorized * company without having- 
said policy of reinsurance signed by a local agent in this 
state. 

(121) Sec. 12. Any company violating the provisions of No tice of 
the foregoing section, upon notice and satisfactory proof vlolations - 
thereof being made to the commissioner of insurance, shall 

have its authority to transact business in this state revoked 
for a period of not less than ninety days, and any insurance Revocation of 
company whose license to do business in Michigan may be so authority, 
revoked by the commissipner of insurance shall not again be 
permitted to do business in Michigan until all taxes and 
penalties due thereon shall have been paid, together with 
any expenses that may be due under the provisions of this 
act to the commissioner of insurance. Any such company R e - a dmission. 
may be readmitted to transact business in the state of Michi¬ 
gan upon a complete recompliance with the laws now in 
force in regard to the admission of insurance companies to 
do business in Michigan. 

(122) Sec. 13. When notice of any violation of the Examination 
eleventh section of this chapter is received by the commis- “f°“ iol ” yj* 
si oner of insurance, it shall forthwith be his duty to visit 

the office of such company where such contract of insurance 
may have been written or made, and demand an inspection 
of the books and records of such company or companies. 

Any company refusing to exhibit its books and records for Refnsa i t0 
such inspection shall be deemed guilty of violating the p>ro- bSoks it: etc 
visions of this sub-division, and the penalties provided in the 
two last preceding sections shall immediately be enforced 
against such company by the commissioner of insurance. 

(123) Sec. 14. No insurance company or association, contributions 
including fraternal beneficiary associations, doing business ^ r rp P^ ical 
in this state shall, directly or indirectly, pay or use, or offer, 
consent or agree to pay or use any money or property for or 

in aid of any political parties, committee or organization, or 



58 


STATE OF MICHIGAN. 


Violations. 


Penalty. 


Not excused 
from testify¬ 
ing, etc. 


False oath, 
etc. 


Recovery of 
penalties. 


Additional 
deposit, 
where made. 


for or in aid of any corporation, joint stock or other associa¬ 
tion organized or maintained for political purposes, or for 
or in aid of any candidate for political office or for nomina¬ 
tion for such office, or to employ any person to procure 
signatures to petitions for amendment to the constitution, 
or for any political purpose, whatsoever, or for the reim¬ 
bursement or indemnification of any person for money or 
property so used. Any officer, director, stockholder, attor¬ 
ney or agent of any corporation or association which violates 
any of the provisions of this section, who participates in, 
aids, abets or advises or consents to any such violation and 
any person who solicits or knowingly receives any money or 
property in violation of this section, shall be guilty of a mis¬ 
demeanor and be punished by imprisonment for not more 
than one year, or a fine of not more than one thousand dol¬ 
lars, or both such fine and imprisonment in the discretion 
of the court; and any officer aiding or abetting in any con¬ 
tribution made in violation of this sub division shall be liable 
to the company or association for the amount so contributed. 

Sub-Division Five. 

(124) Sec. 15. No person shall be excused from attend¬ 
ing and testifying, or producing any books, papers, or other 
documents before any court or magistrate, arbitrator or 
board of arbitrators, upon any investigation, proceeding or 
trial, for a violation of any of the provisions of this act, 
upon the ground or for the reason that the testimony or evi¬ 
dence, documentary or otherwise, required of him may tend 
to incriminate or degrade him; but no person shall be prose¬ 
cuted or subjected to any penalty or forfeiture for or on 
account of any transaction, matter or thing concerning which 
he may so testify or produce evidence, documentary or other¬ 
wise, and no testimony so given or produced shall be used 
against him upon any criminal investigation or proceeding. 

(125) Sec. 16. Any persons required by the provisions 
of this act to take any oath, or affirmation, who shall make 
any false oath or affirmation, shall be deemed guilty of 
perjury. 

(126) Sec. IT. Every penalty provided for by this act, 
if not otherwise provided for, shall be sued for and recovered 
in the name of the people by the prosecuting attorney of the 
county in which the company or the agent or agents so vio¬ 
lating shall be situated; and shall be paid into the treasury 
of said county; such penalties may also be sued for and 
recovered in the name of the people, by the attorney general, 
and, when sued for and collected by him, shall be paid into 
the state treasury. 


Sub-Division Six. 

(127) Sec. 18. Whenever any fire or life insurance com¬ 
pany, organized under the laws of this state and desiring to 
be admitted to do business in any state of the United States 



LAWS RELATING TO INSURANCE. 


59 


or in any foreign country, shall be required to make or main¬ 
tain a deposit of cash or securities or both in some state for 
the benefit of its policy-holders other than or in addition to 
the deposit required to be made with the state treasurer under 
Ihe law of its incorporation, such other or additional deposit 
may be made and maintained with the state treasurer of 
this state. Such deposits so made shall be held by the state To be held 
treasurer as security for the policy-holders of the company as secunt y- 
making the deposit and shall be subject so far as applicable 
to all the provisions of law governing deposits with the 
state treasurer by legal reserve life insurance companies 
organized under the laws of this state. 

(128) Sec. 19. Any individual, firm, corporation or.asso- Procuring 
ciation who is unable to procure sufficient indemnity in the l^na^fhorized 
companies which have been legally admitted to do business in companies, 
this state, may file an affidavit with the commissioner of 
insurance to that effect, and in such case the affiant may be 
authorized to procure such needed additional indemnity from 
companies not represented in this state: Provided, That Proviso, 
such individual, firm, corporation or association shall report taxes * 
to the said commissioner the amount of such policy or poli¬ 
cies, together with the amount of premium paid therefor, and 
shall pay to the commissioner of insurance a sum of money 
equal to a tax of three per cent upon the amount of premiums 
named in said policy or policies. 

See also section 100. 


Sub-Division Seven. 

(129) Sec. 20. Nothing contained in this act shall be Exceptions, 
construed to affect or apply to orders, societies or associa¬ 
tions of the following described classes, which provide for a 
death benefit of not more than two hundred fifty dollars, or 
disability benefits of not more than three hundred fifty dol¬ 
lars to any one person in any one year, or both: 

(a) Grand or subordinate lodges of Masons, Odd Fellows, 

Knights of Pythias (exclusive of the insurance department 
of the Supreme Lodge Knights of Pythias), the Junior Order 
of United American Mechanics (exclusive of the beneficiary 
degree of the insurance branch of the National Council 
Junior Order of the United American Mechanics), or to 
similar societies or orders or associations now doing business 
in this state, which provide benefits exclusively through local 
or subordinate lodges; 

(b) Labor organizations or associations which limit their 
membership to persons of any one occupation employed in a 
designated city or town; 

(c) Domestic societies which limit their membership to 
the employes of a particular city or town, designated firm, 
business house or corporation; 

(d) Domestic societies or associations of a purely relig¬ 
ious, charitable and benevolent description of a single de¬ 
nomination which limit their membership to the residents of 



STATE OF MICHIGAN. 


60 


a designated city, village, or town and of contiguous cities, 
villages, or towns. 

Added 1919, Act 135; Am. 1921, Act 124. 

This section as here added by the act of 1919 does not appear to have been 
properly placed. See section 223, which would appear to be modified by this 
section. 


FART THREE.—LIFE AND CASUALTY 


INSURANCE. 


CHAPTER I.—REGULATIONS. 


Sub-Division One. 


Unauthorized 
business pro¬ 
hibited. 


Penalty. 
Recovery, 
how had. 


Number of 
corporators, 
kinds of in¬ 
surance. 

Life. 


Fidelity, 

surety. 


(130) Section 1. The business of insuring lives or issu¬ 
ing casualty policies or contracts within this state, by any 
private individual, association, or partnership, or by any 
incorporated company, under any authority whatsoever, other 
than the statutes of this state, is hereby wholly prohibited; 
and any person who shall solicit or obtain within this state, 
applications for any such insurance by any such private 
individual, association, partnership, or incorporated company, 
contrary to the provisions of this act, shall be deemed guilty 
of a misdemeanor and liable to a penalty of one hundred 
dollars for every application obtained. Any person who shall 
have paid to any agent of such unauthorized individual, asso¬ 
ciation, partnership, or company, any premium moneys for 
insurance granted or to be granted, shall be entitled to re¬ 
cover the same back from such agent, or at his option, from 
the person, association, partnership, or company for which 
he acted, by action of assumpsit, to be brought at any time 
within six years after such payment. 

(131) Sec. 2. Thirteen or more persons may become a 
corporation for the purpose of making any of the following 
kinds of insurance: 

First, Upon the lives and health of persons and every 
insurance pertaining thereto, and to grant, purchase or dis¬ 
pose of annuities; 

Second, To guarantee the fidelity of persons in positions 
of trust, private or public, and to act as surety on official 
bonds and for the performance of other obligations, and to 
indemnify banks, bankers, brokers, financial or moneyed asso¬ 
ciations, or financial or moneyed corporations, against the 
loss of any bills of exchange, notes, drafts, acceptances of 
drafts, bonds, securities, evidences of debt, deeds, mortgages, 
documents, currency and money, except that no such con¬ 
tract or indemnity indemnifying banks, bankers, brokers, 
financial or moneyed associations or financial or moneyed 
corporations shall indemnify against loss caused by marine 
risks, or risks of transportation or navigation; » 




LAWS RELATING TO INSURANCE. 


61 


Third, To insure against loss or damage to property of the steam boiler 
assured, and loss or damage to the life, person or property wheef/ 
of another for which the assured is liable, caused by the 
explosion of steam boilers or their connections or by the break¬ 
age or rupture of machinery or fly wheels; and against loss 
of use and occupancy caused thereby; 

Fourth, To insure any person against bodily injury or Accident and 
death by accident, or against disability on account of sick- health - 
ness; 

Fifth, To insure any person, firm or corporation against Automobile, 
loss or damage on account of the bodily injury or death by 
accident of any person, or against damage caused by auto¬ 
mobiles, vehicles , or draft animals to property of another, 
for which loss or damage said person, firm or corporation 
is responsible, or against accidental damage sustained by 
automobiles or vehicles, or against all of the said contin¬ 
gencies ; 

Sixth, To insure against a breakage of plate glass, local or Plate glass, 
in transit; 

Seventh, To insure any goods or premises against loss or Sprinkler, 
damage by water caused by the breakage or leakage of 
sprinklers, pumps, water pipes or plumbing and its fixtures, 
and against accidental injury from other causes than fire 
or lightning to such sprinklers, pumps, water pipes, plumb¬ 
ing and fixtures; 

Eighth, To carry on the business commonly known as credit credit, 
insurance or guaranty, either by agreeing to purchase uncol¬ 
lectible debts, or otherwise to insure against loss or damage 
from the failure of persons indebted to the assured to meet 
their liabilities; 

Ninth, To examine titles to real and personal property, fur- Title, 
nish information relative thereto, and insure owners and 
others interested therein against loss by reason of encum¬ 
brances or defective title; 

Tenth, To insure against loss or damage by burglary, theft Burglary and 
or house breaking; theft * 

Eleventh, To insure any person a funeral benefit payable Burial, 
at death. 

Every company organized under this chapter shall have Reinsurance 
an authority to reinsure any risk authorized to be under- prlvlleges ’ 
taken by them, and to grant reinsurance upon any similar 
risk undertaken by any other company, but shall not have 
power to undertake marine and fire risks or any other species 
of insurance whatever than that specified in some one or 
more of the foregoing sub-sections; but a corporation may combined 
be formed for the combined purposes specified in the first S?gam ? zation. 
and fourth sub-sections; or, upon compliance with the require¬ 
ments of sub-division two of this chapter, for all the purposes 
combined, or any two or more of them specified in the third, 
fourth, fifth, sixth, ^seventh, eighth, ninth, and tenth sub¬ 
sections. A life insurance company may insure against the Life insur- 
deatli of the insured by accident or against disability on pariies. 



62 


STATE OF MICHIGAN. 


Application 

chapter. 


account of accident or sickness, but against no other contin¬ 
gency specified in any sub-division of section two of this 
chapter, unless engaged in insuring against such other con¬ 
tingency in this state prior to the first day of January in the 
of year nineteen hundred nine. The provisions of this chapter 
shall apply to any company heretofore organized, or that may 
hereafter be organized under this provision, for any and all 
of the purposes above specified. 

For other classifications of automobile insurance, see secs. 259, 263 and 315. 

LIFE INSURANCE: The object of life insurance is to provide for death by 
disease or in the ordinary course of nature.—John Hancock Mut. L. Ins. Co. 
v. Moore, 34 / 46. The business of life insurance has attained enormous pro¬ 
portions. • It affects so many interests that the state has attempted to say under 
what conditions it may be conducted and has created a department for the 
purpose of supervising the business.—Mich. Mut. L. Ins. Co. v. Hartz, 129 / 104. 

THE APPLICATION: False answers written in an application for life insur¬ 
ance by the agent, unknown to the applicant who signs the same, will not 
avoid the policy.—Van Houten v. Metropolitan Life Ins. Co., 110 / 682. An 
incorrect statement of the maiden name of the insured, by the agent in filling 
out an application, w r ill not avoid the policy.—Plumb v. Mut. Life Ins. Co., 
108 / 94. Policy avoided by misrepresentations in applications as to use of 
liquors.—Malicki v. Guaranty Fund Life Society, 119/151. Waiver by company 
of right to insist on breach of warranty in application for life insurance.—Moore 
v. Mut. Reserve Fund Life Ins. Assn., 133 / 526. A bill in equity will lie for the 
cancellation of a life insurance policy for fraudulent representations in the appli¬ 
cation, and is not subject to the objection that there is an adequate remedy 
at law.—N. Y. Life Ins. Co. v. Hamburger, 174 / 254. An insurance company, 
which claims that fraud was committed in procuring insurance is not entitled 
to inspect the records of a physician of a public institution in which decedent 
was confined when he died, such records being privileged under § 12550, C. L. 
T5.—Mass. Mut. Life Ins. Co. v. Trustees of Michigan Asylum for the Insane, 
178 / 193. The application becomes a part of the policy when it is consummated 
and is binding on the applicant as to the time when the policy shall become 
operative. If it contains a stipulation that it shall not be in force until actual 
delivery, it is valid and binding.—Bowen v. Prudential Ins. Co. of America, 
178 / 63. Both application and policy must be construed together as constituting 
the contract, and is presumed to have been read and understood by the insured. 
—Stitt v. Locomotive Engineers’ Mut. Prot. Ass’n, 177 / 207. A representation 
in an application for accident insurance that plaintiff had not been disabled or 
received medical attention during the past five years, attached to and made a 
part of the policy, was an affirmative warranty which was material and its 
falsity amounted to such fraud as to vitiate the contract.—Rathman v. New 
Amsterdam Casualty Co., 186/115. 

GOOD HEALTH: “Good health” means a state of health free from any disease 
or ailment that affects the general soundness and healthfulness of the system 
seriously.—Hann v. Nat’l Union, 97/513; Brown v. Life Insurance Co., 65 /314. 
The condition of good health required at the time of insurance is not violated 
by a slight indisposition, as headache or colic, only temporary in its effect.— 
Tobin v. Modern Woodmen of America, 126/161. See also, Hann v. Nat’l Union 
97/513: Pudritzky v. Knights of Honor, 76 / 428. A representation that one 
is in good health and has not been attended by a physician means that he is 
free from disease that would seriously affect the general soundness of the system, 
and that he has not been attended by a physician for a serious ailment.— 
Blumenthal v. Berkshire Life Ins. Co., 134/216. To have been “attended by a 
physician” or to have “consulted one professionally,” within the meaning of 
such terms in an application for life insurance, must have been attendance or 
consultation with reference to some ailment of a serious character and not in 
relation to such temporary indisposition as all persons are liable to, though 
considered to be in good health generally.—Plumb v. Mut. Life Ins. Co., 108 / 94. 
Immaterial variation in statement as to attendance of physician for illness prior 
to application for life insurance.—Id. Policy avoided by material misrepresenta¬ 
tions as to past health of applicant, made in the application.—Ketcham v. Am. 
Mut. Accident Association, 117/521; Ferris v. Home Life Assurance Co.,. 118 /485. 
Waiver of provision that no obligation is assumed unless the assured is in 
sound health at the time of insurance.—Hilt v. Life Ins. Co., 110/517. A bill 
in equity will lie to enjoin the prosecution of a pending suit at law unon a 
policy of life insurance and to compel the surrender of the policy for cancellation, 
where a lapsed policy had been reinstated upon a false and fraudulent certificate 
as to the health of the insured.—John Hancock Mut. Life Ins. Co. v. Dick, 
114 / 337. 

THE POLICY: Where a company takes a note for premium due and gives 
renewal leceipts therefor, the policy continues in force.—Mich. Mut. L. Ins. Co. 
v. Bowses, 42/19; Tabor v. Mich. Mut. L. Ins. Co., 44 / 324. A policy is not issued 
until delivered.—Malicki v. Guaranty Fund Life Society, 119 /151. Vested 
interests in policies of life insurance.—Voss v. Conn. Mut. Life Ins. Co., 119/161. 
The construction of stipulations in a life policy is for the courts.—New Era 
Ass’n v. Maetavish, 133 / 68. Construction of contract of casualty insurance.— 
Stephens v. Penn. Casualty Co., 135 / 189. Reinstatement of lapsed policy.— 
Clark v. Insurance Co., 107 / 160; Mosser v. Life Indemnity Co., 115 / 672. When 
a policy for the surrender value must be demanded.—Clark v. Insurance Co., 



LAWS RELATING TO INSURANCE. 


63 


107 / 160. Under a policy requiring the assured to give immediate notice in 
writing of an accident or claim, notice need not be given until there has been 
both an accident and a claim for damages.— G. R. Electric Light & Power Co. v. 
Fidelity & Casualty Co., Ill /148. An assignment of a life insurance policy 
to secure creditors is valid.—McDonald v. Birss, 09 / 329; Met. L. Ins. Co. v. 
O’Brien, 92 / 584. Surrender of policy.—Lockwood v. Mich. Mut. L. Ins. Co., 

108 / 334. A policy of insurance issued in Michigan by a mutual benefit asso¬ 
ciation organized under the laws of another state having a branch in Michigan 
is a Michigan contract—Dolan v. Catholic Mutual Benefit Ass’n, 152 / 266. Where 
insurance policies are tontine in character, statements as to the prospective 
surplus or profits will be regarded by the courts as estimates rather than definite 
promises to pay a fixed amount, and while this does not prevent insurer and 
insured irom contracting for insurance in a definite amount, it does prevent the 
turning of a tontine policy into one for a fixed sum in case the surplus does 
not reach expectations.—Luellen v. N. Y. Life Ins. Co., 201 / 512. 

BENEFICIARIES: Insurable interest.—L. & A. Ins. Co. v. Catlin, 106 / 138; 
Ilosmer v. Welch, 107 / 470. Upon the execution of a life insurance policy, 
the beneficiaries therein named acquire an interest which the law recognizes 
and which the insured cannot dispose of at his own will.—Lockwood v. Mich. 
Mut. Life Ins. Co., 108 / 334. Change of beneficiary in life insurance policy.— 
Malbury v. Metropolitan Life Ins. Co., 127 / 568. One of two beneficiaries in a 
life insurance policy cannot maintain an action for his proportion of the in¬ 
surance without accounting for his failure to join the other beneficiary.—Voss 
v. Conn. Mut. Life Ins. Co., 119/161. When insured is not entitled to sick 
benefits for “total incapacity.”—Shirts v. Phoenix Accident & Sick Benefit Ass’n, 
135 / 439. Public policy does not forbid an insured selecting as his beneficiary 
one not having an insurable interest in his life.—Dolan v. Mutual Benefit Ass’n, 
152 / 266. A life insurance policy payable to the insured’s wife if she be living 
at his death and, if she be then dead, to her children, passes at the time of its 
issuance a vested interest to her, contingent upon her surviving the insured, 
and to her children and to the children of her children contingent upon her 
non-survival of the insured.—Germania Life Ins. Co. v. Wirtz, 196 / 145. 

PAYMENT OF INSURANCE: Proofs of death.—John Hancock Mut. Life Ins. 
Co. v. Dick, 117/518. When an assignment of a life insurance policy to a 
person having no insurable interest in the life of the assignor will be held 
good.—Prudential Ins. Co. v. Liersch, 122 / 436. Payment of mutual benefit 
insurance to common law wife.—Maccabees v. McAllister, 132 / 69. Payment of 
insurance by company, in good faith, to party in possession of policy.—Voss v. 
Conn. Mut. Life Ins. Co., 131 / 597. What constitutes total disability under an 
accident policy.—Turner v. Fidelity & Casualty Co., 112 / 425; Hohn v. Inter- 
State Casualty Co., 115/79. Failure of the insured to give notice of an injury 
within the time required by an accident policy is waived by the insurance 
company’s asking for further information after receiving notice, without sug¬ 
gesting that the notice came too late.—Hohn v. Inter-State Casualty Co., 115 / 79. 
When proofs of claim for sick benefit need not be furnished as provided in the 
policy.—Hoffman v. Mich. Home & Hospital Ass’n, 128 / 323. Under a proviso 
limiting the recovery to two-fifths of the amount of insurance, if death “result 
from unnecessary exposure to obvious risk of injury or obvious danger,” plaintiff 
could recover the full amount, unless the insured were guilty of gross or wanton 
negligence.—Walter v. People’s Health and Accident Ins. Co., 173 / 581. Whether 
decedent’s act was intentional and whether he was guilty of such negligence, 
held a question of fact for the jury.—Id. Defendant held not a guarantor of 
the estimated surplus, so as to entitle plaintiff to recover the amount as estimated 
in the illustrative blank attached to the tontine policy.—O’Brien v. Equitable 

Life Assurance Society of U. S., 173 / 432. 

MATTERS OF DEFENSE: The burden of proof is upon an insurance com¬ 
pany to show a violation of conditions avoiding an otherwise valid policy.— 
Malicki v. Chicago Guaranty Fund Life Society, 119/151. Question of use of 
liquors, as defense against liability of life insurance policy, where evidence is 
conflicting, is for jury.—Malicki v. Guaranty Fund Life Society, 123 / 148. 
Defense against note given for premium for life insurance.—Sebring v. Hazard, 
128 / 330. Suicide, in the case of one non compos is as much the result of dis¬ 
ease as death by fever or consumption.—John Hancock Mut. L. Ins. Co. v. Moore. 
34 / 46. Suicide as a defense against claim of insurance.—Wasey v. Travelers’ 
Insurance Co., 126/119. “Voluntary exposure to unnecessary danger,” as an 

exemption from liability on an accident insurance policy, means a conscious 
or intentional exposure, involving gross or wanton negligence on the .part of the 
insured.—Johnson v. Guarantee & Accident Co., 115/86. A condition in an 

accident insurance policy against liability for injuries caused by “voluntary 
or unnecessary exposure to danger” is limited to cases of intentional exposure 
to recognized danger, and does not include acts of mere thoughtlessness on the 
part of the insured.—Irwin v. Accident & Sick Benefit Ass’n, 127 / 630. An 
exception in an accident policy of death or injuries resulting directly or in¬ 
directly from poison extends to cases where the poison is administered through 
the mistake of a druggist or physician.—Earlv v. Standard L. & A. Ins. Co., 
113/58. An intentional homicide is an accident within the meaning of an 

accident policy, if insured himself was in no way responsible for his death.— 
Furbush v. Maryland Casualty Co., 131 / 234. Question of whether insured came 
to his death bv homicide or suicide is for the iury, in case of contest.—Furbush 
v. Maryland Casualty Co., 133 / 479. An accident insurance comoanv has the 
burden in an action upon a policy, of nroving that an injury to plaintiff, shown 
to be the result of an accident, was within some eveention named in the policy.— 

Hess v. Masonic Mut. Accident Ass’n, 112/196. Held, on review of the evidence 

in an action on an accident policy, that the question whether death resulted 
from violent and external iniuries or from a chronic distemper was for the jury; 

also that recovery could not be refused on the ground that the insured -pad 



64 


STATE OF MICHIGAN. 


Capital stock, 
$100,000 to 
$5,000,000. 


Mutual com¬ 
panies. 


$100,000 

deposit. 

Proviso. 


Further 
proviso, sepa¬ 
rate capital 
for surety 
business. 


$250,000 to 
$ 10 , 000 , 000 . 


Deposit 

$ 200 , 000 . 


Mutual 

requirements. 


Depreciation 
of securities. 


Proviso, 
accident and 
health. 


Funeral 

benefit. 


Capital 
and deposit. 


a disease produced by the injury or any complaint that did not proximately 
cause his death.—Skinner v. Accident Ass’n, 190 / 353. 

FIDELITY INSURANCE: A corporate surety for hire, unlike a gratuitous 
surety, cannot invoke the rule of strictissimi juris .—Ladies bf Maccabees v. Surety 
Co., 196 / 27. 

(132) Sec. 3. The capital of any stock company organized 
under this chapter shall not be less than one hundred thou¬ 
sand dollars, in shares of fifty dollars each, which capital 
stock may be increased by a vote of two-thirds of the stock¬ 
holders present or represented at any regular meeting called 
for that purpose to not more than five million dollars; and 
no such stock company and no company organized to do 
business on the mutual plan, except as otherwise provided by 
law, shall be authorized to issue policies or assume any risk 
whatever until they have deposited with the state treasurer, 
as security for any liability to insured parties, securities of 
the kind and character in which domestic insurance com¬ 
panies are permitted to invest their funds as prescribed in 
chapter one, part two hereof, to the amount in par value, 
exclusive of interest, of not less than one hundred thousand 
dollars, which stocks or bonds shall be retained by the state 
treasurer, and disposed of as hereinafter directed: Provided, 
however, That such deposits shall be made within one year 
from the date of the articles of association: Provided fur¬ 
ther, That the capital of any stock company organized to 
do a general indemnity and surety bonding business shall be, 
for the separate purpose of such surety bonding business 
and additional to the capital required in any other business 
in which it may be lawfully engaged, not less than two hun¬ 
dred fifty thousand dollars nor more than ten million dol-. 
lars, and its deposit of securities with the state treasurer 
as herein provided for shall not be less than two hundred 
thousand dollars, and such capital and such deposits shall 
be used solely in, and shall be liable only for the debts and 
liabilities of such surety bonding business; and no mutual 
insurance company shall commence business, by issuing poli¬ 
cies, until it shall have received at least five hundred applica¬ 
tions for insurance, on which the premiums shall amount to 
at least five thousand dollars, nor until the examination by 
the attorney general and commissioner of insurance as herein 
provided; and in case any of said securities shall depreciate 
below par, the state treasurer is hereby authorized and di¬ 
rected to cause the corporation which has deposited them to 
make such depreciation good by additional deposit of such 
securities as are allowed by law, and to prohibit any corpora¬ 
tion from transacting any insurance business within this 
state until the same shall have been deposited: Provided, 
That companies organized to insure on the monthly premium 
payment plan any person or persons against bodily injury or 
death by accident, or against disability on account of sick¬ 
ness, and any company organized to provide a funeral benefit 
payable at death not exceeding five hundred dollars may or¬ 
ganize under this act with a capital stock of not less than 
twenty-five thousand dollars with shares of fifty dollars each. 



LAWS RELATING TO INSURANCE. 


65 


but no such company shall issue policies or assume any risk 
until it shall have deposited with the state treasurer twenty- 
live thousand dollars in cash or other security, and under the 
same conditions as is applied to other stock companies re¬ 
ferred to in this section. 

Am. 1921, Act 157. 

See section 409 imposing fee of one mill on each dollar of increase of capital 
stock. 

When the state treasurer will not be required to permit the withdrawal of its 
deposit, see Life Ins. Co. v. Hambitzer, 95 / 513. 

(133) Sec. 4. The bonds, or stocks and mortgage securi- state treas- 
ties deposited by any such company with the state treas- securiUes° ld 
urer, shall be held by him as security for policy-holders in secm es 
such company; but so long as it continues solvent, the com¬ 
pany shall have the right from time to time to collect and 
receive the dividends or interest thereon, and to withdraw Dividends 
any of the same, on depositing with the state treasurer other and interest - 
securities of the kinds specified, so that the amount in his 

hands for the security of policy-holders, at any time, shall 
not be less than the amount in any case required by this 
act, exclusive of interest. If at any time a claim shall be when secur- 
niade against any such company on one of its policies, and jjjg £J a Jatisfy 
the same shall not be adjusted and paid, and the claimant judgment, 
shall recover judgment thereon against the company, the 
state treasurer, on being served with an affidavit by the claim¬ 
ant or his attorney, setting forth the recovery of the judg¬ 
ment, and that the same has remained unpaid for three 
months, and that no proceedings are pending for the review or 
reversal of the same, shall proceed to sell at the current 
market value, sufficient of the stocks or bonds so deposited 
with him, to satisfy the amount of such judgment, together, 
with one per centum for his services and expenses; or, if said May collect 
stocks or bonds shall previously have been disposed of for ^curfSes. 
the satisfaction of claims, then he shall proceed to collect 
sufficient of the mortgage securities to pay the amount of the 
claim mentioned in such affidavit, with his reasonable costs 
and expenses; and said company, after notice of the service when com- 
of such affidavit, shall not be at liberty to issue any new £ot y issue y new 
policies until any deficiency of securities caused by the neces- policies, 
sitv of meeting such claims, shall have been made good by 
further deposit with said state treasurer of the like securities: 

Provided, however, That if any such company shall become Proviso, in¬ 
insolvent, and proceedings shall be taken in equity with a sovency ‘ 

\ iew to its dissolution, nothing in this section contained shall 
prevent an equal and just distribution of all its assets, in¬ 
cluding the securities so deposited with the state treasurer, 
among the persons equitably entitled thereto. 

(134) Sec. 5. Any company organized to transact the Reorganiza- 
business of life insurance or insurance against accident or tlon ’ 
sickness under any laws of this state, may reorganize under 

this law, and have the benefit of all its provisions, by a vote 
of the stockholders, or, if it be a mutual company, then by 
a vote of the members called for that purpose, in pursuance 



66 


STATE OF MICHIGAN. 


Filing of 
articles. 


Change in 
business. 


Casualty in¬ 
surance with¬ 
out certificate 
of authority 
unlawful. 


Amount of 
paid up 
capital 
necessary. 


Amount of 

securities 

deposited. 


Annual 

statements. 


Computation 
of reserve 
fund. 


of its present articles, on entering into new articles of asso¬ 
ciation, signed by its charter officers, setting forth the par¬ 
ticulars required by the second section of this chapter and 
filing a copy of such articles with the commissioner of insur¬ 
ance and the proper county clerk, after such a certificate of 
the attorney general has been obtained as is required when 
articles are amended; and such company, in so reorganizing, 
shall be at liberty to make any change in its mode of doing 
business, not inconsistent with the provisions of this act, 
and to increase its capital stock, or to retire any guaranteed 
capital stock, as the stockholders or members may deem 
proper; but in so reorganizing they shall be subject to all the 
provisions of this act in regard to the deposit of securities, 
and to all its other provisions in the same manner and to the 
same extent as if such company had not previously had a 
corporate existence. * 


Sub-Division Two. 

(135) Sec. 6 . Casualty Insurance. No company, asso¬ 
ciation, individual or association of individuals, formed under 
the laAvs of this or any other state or foreign government, 
whether incorporated or not, shall directly or indirectly 
transact the business either of plate glass, accident, employ¬ 
er’s liability, and workmen’s compensation, livestock, health, 
burglary, steam boiler, credit or casualty insurance, or insure 
the fidelity of persons holding public or private trust in this 
state, without receiving a certificate of authority from the 
commissioner of insurance. 

Construction of credit guaranty policy.—Sloman v. Credit Guarantee Co., 
112 / 258. Knowingly disobeying orders or rules as cause of discharge from 
employment.—Stitt v. Locomotive Engineers’ Mut. Prot. Ass’n, 177 / 207. 

(136) Sec. 7. No company or association except as 
expressly otherwise provided by law, mentioned in the last 
preceding section shall be authorized by the commissioner of 
insurance to transact business in this state, unless possessed 
of an actual paid up capital of at least one hundred thou¬ 
sand dollars and a deposit of at least one hundred thousand 
dollars with the state treasurer of this state, of the securities 
prescribed in chapter one, part two hereof, duly assigned to 
such officer in trust for the benefit of all policy-holders. The 
market value of such deposit securities shall at all times be 
equal to one hundred thousand dollars. 

(137) Sec. 8. Such individuals, companies or associa¬ 
tions shall be required to comply with the laws of this state 
regulating the business of life insurance, in respect to making 
annual statements of financial conditions, and with all the 
other requirements so far as applicable. The commissioner of 
insurance shall compute the reserve fund to be held by such 
companies or associations by taking fifty per centum of the 
premiums received upon all risks not expired at the time of 
making such computation; and in addition thereto in the case 
of corporations doing an employer’s liability insurance, the 



LAWS RELATING TO INSURANCE. 


67 


commissioner of insurance shall compute the liabilities for idem, liabiii- 
unsettled claims in said employers’ liability insurance busi- settled un ‘ 
ness at not less than fifty per cent of the premiums received claims, 
nnd earned during each and every year, less the amount paid 
for losses and expenses incidental thereto, upon claims 
brought under policies issued during said year: Provided, Proviso. 

That such reserve shall not be computed for more than the 
five years previous to the time of making such computation: 

Provided further, That to the amount of the reserve so ascer- Further 
tained, there shall be added such amount as is necessary to proviso - 
provide for claims of earlier date, not liquidated. Whenever impairment 
the capital of any company or association authorized under of capitaL 
this sub-division, shall become impaired to the extent of fifteen 
per cent or shall otherwise become unsafe, it shall be the duty 
of fhe commissioner of insurance to cancel the authority of 
such company or association. 

This section requiring companies engaging in the casualty insurance business 
to comply with the laws regulating the business of life insurance in respect to 
making annual statements of financial conditions “and with all the other re¬ 
quirements so far as applicable,” held, not to require casualty companies to 
comply with section 3, chapter 2, part 3, prohibiting the insertion of a clause 
in their policies limiting the time within which an action thereon could be 
brouerlit to less than six years after the cause of action accrued.—Witbowski v. 

Fidelity & Cas. Co. of N. Y., 218 / 22. 

(138) Sec. 9. The words “company” or “associations” company and 
as used in this sub division shall be construed to mean any dS°n C ed! ,on 
company, association, corporation, partnership, individual or 
association of individuals doing or attempting to do business 

in this state under any charter, compact, agreement or 
statute of this or any other state or foreign government, or 
whether incorporated or not, involving a guaranty contract 
or pledge of insurance upon plate glass or steam boilers, or 
upon the life of domestic animals and loss by disease, acci¬ 
dent, or theft of such animals owned or located in this state, 
or upon individuals, residents of this state, against disease 
or against personal injury, disablement or death resulting 
from accident, or against loss from burglary, theft or both, 
or against any other casualty specified in the charter which 
may lawfully be the subject of insurance or guaranteeing the 
fidelity of any person holding public or private trust, or 
involving any contract to guarantee and indemnify merchants, 
traders, and those engaged in business and giving credit, 
from loss and damage by reason of giving and extending 
credit to their customers and those dealing with them. 

Sub-Division Three. 

(139) Sec. 10. Every company doing a business of life Annual 
insurance within this state shall annually in the month of official vaiua- 
3anuary, furnish the commissioner of insurance the data 
necessary for determining the amount of its liabilities, and 

fhe valuation of all its outstanding policies to be made by the 
commissioner of insurance, or under his authority, and in 
making such valuation, the rate of interest to be assumed 
shall, after and including the year eighteen hundred ninety- 
six, be four per centum per annum, and at the election of 
any such insurance company such rate of four per centum 



68 


STATE OF MICHIGAN. 


Compensation 
for making. 

Proviso, for¬ 
eign com¬ 
panies. 


Certain cer¬ 
tificate suf- 
ficent. 


Deficiency 
of assets. 


Notice given. 


Business 

penalized. 


Further pro¬ 
viso, recipro¬ 
cal provi¬ 
sions. 


Commissioner 
may vary 
standards, 
etc. 


shall be assumed any year prior to eighteen hundred ninety- 
six, and the rate of mortality shall be that established by 
the “American experience life table,” as shown in the sched¬ 
ule hereto annexed, and such company shall pay the com¬ 
missioner of insurance, as a compensation for such estimate, 
one cent for each thousand dollars insured: Provided, That 
where, by the laws of any other state, an annual valuation is 
required to be made by an insurance commissioner or other 
state officer, the official certificate of any such commissioner 
or officer, being filed with the commissioner of insurance and 
showing the annual official valuation of the policies of any 
company doing business within such state, and showing also 
the basis of such valuation, shall be sufficient, and stand in 
the place of any valuation of the policies of such company, 
by or under the direction of the commissioner of insurance of 
this state. But no company shall be permitted to transact 
business within this state, unless the amount of its assets 
shall equal the net value of all its outstanding obligations, 
as determined according to the assumptions in regard to rates 
of interest and mortality as hereinbefore provided; and in 
case fhe assets of any company transacting business within 
this state shall at any time be less than is required by the 
provisions of this act, the commissioner of insurance shall 
serve a written notice upon the person designated by such 
company to receive service of process under the laws of this 
state, or shall address such notice by mail to the principal 
office of such company and publish the same at least three 
times in some newspaper circulated daily in this state; and 
if, after the expiration of ten days from the service of pub¬ 
lication of such notice, any agent or officer of such company 
shall receive applications for policies, or issue policies, while 
such deficiency of assets exists and the cost of giving such 
notice remains unpaid by such company, he shall be subject 
to flip penalties provided in section one of this chapter: 
Provided further, That when the certificate of the commis¬ 
sioner of insurance of the official valuation of the policies 
issued by any company organized under the laws of this 
state, shall not be accepted by any other state in lieu of a 
valuation of the same by the insurance officer of such other 
state, then all companies organized under the laws of such 
of her state, shall be required to have a separate valuation 
made under the authority of the commissioner of insurance 
of this state, as herein provided. The commissioner of insur¬ 
ance may, upon written application of the company, vary 
the standards of mortality and interest required bv this sec¬ 
tion, value policies in groups, use approximations and accept 
the valuation of the department of insurance of any other 
state in place of the valuation required by this act; nothing 
in this paragraph shall be construed as permitting the use 
of standards of mortality and interest or methods producing 
reserves lower than those based upon the standard prescribed 
by this section; said policies shall be valued in accordance 
with the terms of the policy contracts. 



LAWS RELATING TO INSURANCE. 


G9 


SCHEDULE. 


Table of mortality based on American experience. 


Age. 

Numbers 

living. 

Numbers 

dying. 

Expec¬ 
tation cf 
life. 

Age. 

Numbers 

living. 

Numbers 

dying. 

Expec¬ 
tation of 
life. 

Age. 

Numbers 

living. 

Numbers 

dying. 

Expec¬ 
tation of 
life. 

10 

100,000 

749 

48.72 

39 

78,862 

756 

28.90 

68 

43,133 

2,243 

9.48 

11 

99,251 

746 

48.08 

40 

78,106 

765 

28. 18 

69 

40,890 

2,321 

8.98 

12 

98,505 

743 

47.44 

41 

77,341 

774 

27.45 

70 

38,569 

2,391 

8.48 

13 

97,762 

740 

46.82 

42 

76,567 

785 

26.72 

71 

36,178 

2,448 

8.00 

14 

97,022 

737 

46.16 

43 

75,782 

797 

25.99 

72 

33,730 

2,487 

7 54 

15 

96,285 

735 

45.50 

44 

74,985 

812 

25.27 

73 

31,243 

2,505 

7.10 

16 

95,550 

732 

44.85 

45 

74,173 

828 

24.54 

74 

28,738 

2,501 

6.68 

17 

94,818 

729 

44 19 

46 

73,345 

848 

23.80 

75 

26,237 

2,476 

6.28 

18 

94,089 

727 

43.53 

47 

72,497 

870 

23.08 

76 

23,761 

2,431 

5.88 

19 

93,362 

725 

42.87 

48 

71,627 

896 

22.36 

77 

21,330 

2,369 

5.48 

20 

92.637 

723 

42.20 

49 

70,731 

927 

21.63 

78 

18,961 

2,291 

5.10 

21 

91,914 

722 

41.53 

50 

69,804 

962 

20.91 

79 

16,670 

2,196 

4 74 

22 

91,192 

721 

40.85 

51 

68,842 

1,001 

20.20 

80 

14,474 

2,091 

4.38 

23 

90,471 

720 

40.17 

52 

67,841 

1,044 

19 49 

81 

12,383 

1,964 

4.04 

24 

89,751 

719 

39 49 

53 

66,797 

1,091 

18.79 

82 

10,419 

1,816 

3.71 

25 

89,032 

718 

38.81 

54 

65,706 

1,143 

18.69 

83 

8,603 

1,648 

3.30 

26 

88,314 

718 

38.11 

55 

64,563 

1,199 

17.40 

84 

6,955 

1,470 

3.08 

27 

87.596 

718 

37.43 

56 

63,364 

1,260 

16.72 

85 

5,485 

1,292 

2.77 

28 

86,878 

718 

36.73 

57 

62,104 

1,325 

16.05 

86 

4,193 

1,114 

2.47 

29 

86,160 

719 

36.03 

58 

60,779 

1,394 

15.39 

87 

3,079 

933 

2.19 

30 

85,441 

720 

35.33 

59 

59,385 

1,468 

14.74 

88 

2,146 

744 

1.93 

31 

84,721 

721 

34.62 

60 

57,917 

1,546 

14.09 

89 

1,402 

555 

1.69 

32 

84,000 

723 

33.92 

61 

56,371 

1,628 

13.47 

90 

847 

385 

1.42 

33 

83,277 

726 

33.21 

62 

54,743 

1,713 

12.85 

91 

462 

246 

1.19 

34 

82,551 

729 

32.50 

63 

53,030 

1,800 

12.26 

92 

216 

137 

.93 

35 

81,822 

732 

31.78 

64 

51,230 

1,889 

11.68 

93 

79 

58 

.80 

36 

81,090 

737 

31.07 

65 

49,341 

1,980 

11.10 

94 

21 

18 

.64 

37 

80,353 

742 

30.35 

66 

47,361 

2,070 

10.54 

95 

3 

3 

50 

38 

79,611 

749 

29.62 

67 

45,291 

2,158 

10.00 






The method of taxation provided is not obnoxious to the constitutional requirement of uniform¬ 
ity.—Mich. Mut. Life Ins. Co. v. Hartz, 129 / 104 . This section clearly recognizes that, to arrive 
at the net assets of the company, it is necessary t'o deduct from its gross assets its liabilities; 
and it is equally clear that the property owned by an insurance company cannot be said to be 
more than the difference between these two sums.—Mich. Mut. Ins. Co. v. Detroit Com. Council, 
133 / 411 . Tables of mortality admissible in evidence.—Cooper v. Railway Co.. 06 / 208 ; Jones v. 
McMillan, 129 / 86 . The mortality tables are controlling, if offered in evidence, as to the 
expectancy of life, unless there is testimony tending to show that such expectancy was greater 
or less than the tables indicate.—Little v. Bousfield & Co., 105 / 654 . This table shows the probable 
expectancy of life but is not conclusive evidence.—Hunn v. Railroad Co., 78 / 528 . Except 
in the absence of evidence to show a greater probability of life.—Nelson v. Railway Co., 
104 / 582 ; Beattie v. City of Detroit, 137 / 327 . But this table is not admissible in case of an 
age under ten years.—Rajnowski v. Railroad Co., 74 / 27 . Limitations on expectation of life, as 
shown by tables.—Rouse v. Detroit Electric Company, 128 / 149 . Expectancy beyond that shown 
by table.—Hamilton v. M. C. R. Co., 135 / 95 . 



























70 


STATE OF MICHIGAN. 


Mortgage 
securities 
with state 
treasurer, 
assign¬ 
ment of. 


Violation of 
custody of 
state, deemed 
embezzle¬ 
ment. 


Penalty. 


Company dis¬ 
bursements to 
be by 
voucher. 


When voucher 
cannot be 
obtained. 


Salary of 
officer, etc,, 
limited. 


Period 

limited. 


Proviso, re¬ 
newal com¬ 
missions, etc. 


(140) Sec. 11. The mortgages authorized to be deposited 
with the state treasurer, under this act shall be made or 
assigned to him in his name of office, but shall not be subject 
to assignment or sale by him, except as the company deposit¬ 
ing the same may become entitled to receive the same back 
according to the conditions of this act, but said state treas¬ 
urer may enforce the same in his name of office, whenever 
necessary to pay claims as hereinbefore provided. The custody 
of any scarifies by the state treasurer under this act shall 
be deemed the custody of the state and any sale, transfer 
by hypothecation, or conversion of any such securities by 
the state treasurer, or by any officer, clerk or other person 
employed in his office, except as authorized by this act shall 
be deemed an act of embezzlement, and shall be punished by 
imprisonment in the state prison not more than fourteen 
years, or by tine not exceeding two thousand dollars, or by 
both such fine and imprisonment in the discretion of the 
court. 

(141) Sec. 12. No domestic life insurance company shall 
make any disbursement of one hundred dollars or more unless 
the same be evidenced by a voucher signed by or on behalf 
of the person, firm, or corporation receiving the money and 
correctly describing the consideration for the payment. If 
the expenditure be for both services and disbursements, the 
voucher shall set forth the services rendered and an itemized 
statement of the disbursements made. If the expenditure be 
in connection with any matter pending before any legislative 
or public body, or before any department or officer of any 
state or government, the voucher shall correctly describe, in 
addition, the nature of the matter and of the interest of such 
company therein. When such voucher cannot be obtained 
the expenditure shall be evidenced by an affidavit describing 
the character and object of the expenditure and stating the 
reason for not obtaining such voucher. 

(142) Sec. 13. No domestic life insurance company shall 
pay any salary, compensation or emolument to any officer, 
trustee or director thereof, nor any salary, compensation or 
emolument amounting in any year to more than five thousand 
dollars to any person, firm or corporation, unless such pay¬ 
ment be first authorized by a vote of the board of directors 
of such life insurance company. No such life insurance com¬ 
pany shall make any agreement with any of its officers, trus¬ 
tees or salaried employes whereby it agrees that for any 
services rendered or to be rendered he shall receive any 
salary, compensation or emolument that will extend beyond 
a period of twelve months from the date of such agreement; 
and no officer, director or trustee who is paid a salary for 
his services of more than one hundred dollars per month 
shall receive any other compensation or emolument: Pro¬ 
vided, That the limitation as to time contained herein shall 
not be construed as preventing a life insurance company 
from entering into contracts with its agents for the payment 
of renewal commissions or salaries and commissions to any 



LAWS RELATING TO INSURANCE. 


71 


officer, agent or employe based on the amount of business 
produced. No such company shall grant any pension to any pensions 
officer, director or trustee thereof, or to any member of his unlawful, 
family after his death. 

Sub-Division Four. 

(143) Sec. 14. Any number of persons, not less than Corporate 
thirteen, may associate together and form an incorporated powers - 
company for the following purposes, to-wit: 

First, To insure railway employes against loss of position 
resulting from discharge or retirement; 

Second, To insure any person against bodily injury or death 
by accident, or against disability on account of sickness; 

Third, To insure the lives and health of persons and every 
insurance pertaining thereto, and to grant, purchase or dis¬ 
pose of annuities. 

Am. 1919, Act 363; 1923, Act 71. 

(144) Sec. 15. The amount of capital stock of any com- capital 
pany organized under the provisions of this sub-division shall stock> 
not be less than one hundred thousand dollars, in shares of 

the par value of fifty dollars each. 

Am. 1919, Act 363. 

(145) Sec. 16. Such provisions of this part as are not Provisions 
inconsistent with, or in conflict with provisions of this sub- a PP llcab,e - 
division are hereby made applicable to the operation of any 
company organized under the provisions of this sub-division. 


CHAPTER II.—LIFE AND CASUALTY INSURANCE CONTRACTS. 

Sub-Division One. 

(146) Section 1. Every policy of insurance hereafter policy, what 
issued or delivered within this state by any life insurance t0 conta,n - 
corporation doing business within the state shall contain the 

entire contract between the parties. And nothing shall be 
incorporated therein by reference to any constitution, by-laws, 
rules, application or other writing unless th% same are 
endorsed upon or attached to the policy when issued. 

The failure to attach the application to the policy must be held as an expression 
on the part of the company of its purpose to waive or relinquish its right to 
have the application considered as a part of the contract of insurance.—N. Y. 

Life Ins. Co. v. Hamburger, 174 / 254, 259. Where a person accepts a contract 
and acts upon it he is bound to know its terms and conditions, and he cannot 
accept its benefits, or a part thereof, and reject the balance, and plead ignorance 
of its conditions.—Warren v. Federal Life Ins. Co., 198 / 342. As to the applica¬ 
tion of life requirements to casualty contracts, see Witkowski v. Fidelity & Cas. 

Co., 218 / 23. 

(147) Sec. 2. Any life insurance company insuring lives safeguard 
within this state may include in its policy contract a pro- a f£ inst lapse ’ 
vision intended to safeguard such life insurance against 



72 


STATE OF MICHIGAN. 


Mandatory 
policy pro¬ 
visions. 


Advance 

payments. 


Grace. 


Incontesta¬ 
bility clause. 


Statements 
deemed rep¬ 
resentations. 


Age under¬ 
stated. 


Participation. 


lapse, or provisions that shall provide a special surrender 
value therefor in the event that the insured thereunder shall, 
by reason of accidental bodily injury or disease, be unable to 
continue the premium payments thereon. 

Sub-Division Two. 

(148) Sec. 3. No policy of life insurance shall be issued 
in this state, unless the same shall contain the following pro¬ 
visions : 

First, A provision that all premiums shall be payable in 
advance, either at the home office of the company or to an 
agent of the company, upon delivery of a receipt signed by one 
or more of the officers who shall be named in the policy; 

Second, A provision for a grace of one month for the pay¬ 
ment of every premium after the first year, which may be sub¬ 
ject to an interest charge, during which month the insurance 
shall continue in force, which provision may contain a stipu¬ 
lation that if the insured shall die during the month of grace 
the overdue premium will be deducted in any settlement under 
the policy; 

Third, A provision that the policy, together with the appli¬ 
cation therefor, a copy of which application shall be endorsed 
upon or attached to the policy and made a part thereof, shall 
constitute the entire contract between the parties and shall 
be incontestable after it shall have been in force during the 
life time of the insured for two years from its date, except 
for non-payment of premiums and except for violations of 
the policy relating to naval and military services in time of 
war, and at the option of the company provisions relative to 
benefits in the event of total and permanent disability and 
provisions which grant additional insurance specifically 
against death by accident may also be excepted; 

Fourth, A provision that all statements made by the in¬ 
sured, shall, in the absence of fraud, be deemed representations 
and not warranties, and that no such statement shall avoid 
the policy unless it is contained in a written application and 
a copy of such application shall be endorsed upon or attached 
to the policy when issued; 

Fifth, A provision that if the age of the insured has been 
under stated, the amount payable under the policy shall be 
such as the premium would have purchased at the correct age; 

Sixth, A provision that the policy shall participate in the 
surplus of the company, and that, beginning not later than the 
end of the fifth policy year, the company will determine and 
account for the portion of the divisible surplus accruing on 
the policy, and that the owner of the policy shall have the 
right to have the current dividend arising from such partic¬ 
ipation paid in cash, and that at periods of not more than five 
years such accounting and payment at the option of the policy¬ 
holder shall be had. This provision shall not be required in 
non-participating policies; 



LAWS RELATING TO INSURANCE. 


73 


Seventh, A provision that after three full year premiums Loans, 
have been paid, the company at any time, while the policy is 
in force, will advance, on proper assignment of the policy 
and on the sole security thereof, at a specified rate of interest, 
a sum equal to, or at the option of the owner of the policy, less 
than the reserve at the end of the current policy year on the 
policy and on any dividend additions thereto, specifying the 
mortality table and rate of interest adopted for computing 
such reserve, less a sum not more than two and one-half per 
centum of the amount insured by the policy and of any 
dividend additions thereto; and that the company will deduct Deduction for 
from such loan value any existing indebtedness on the policy debt 
and any unpaijl balance of the premium for the current policy 
year, and may collect interest in advance on the loan to the 
end of the current policy year; which provision may further 
provide that such loan may be deferred for not exceeding six 
months after the application therefor is made. It shall be 
further stipulated in the policy that failure to pay any such 
advance or to pay interest shall not void the policy unless 
the total indebtedness thereon to the company shall equal or 
exceed such loan value at the time of such failure nor until 
one month after notice shall have been mailed by the company 
to the last known address of the insured and of the assignee 
if any. No condition other than as herein provided shall be 
exacted as a prerequisite to any such advance. This provision 
shall not be required in term insurances; 

Eighth, A provision which, in event of default in premium Default in 
payments, after premiums shall have been paid for three premiums, 
years, shall secure to the owner of the policy a stipulated 
form of insurance, the net value of which shall be at least 
equal to the reserve at the date of default on the policy and 
on any dividend additions thereto, specifying the mortality 
table and rate of interest adopted for computing such reserves, 
less a sum not more than two and one-half per centum of 
the amount insured by the policy and of any existing dividend 
additions thereto, and less any existing indebtedness to the 
company on the policy. Such provision shall stipulate that surrender 
the policy may be surrendered to the company at its home value * 
office within one month from date of default for a specified 
cash value at least equal to the sum which would otherwise 
be available for the purchase of insurance as aforesaid and 
may stipulate that the company may defer payment for not 
more than six months after the application therefor is made. 

This provision shall not be required in term insurances of 
twenty years or less; 

Ninth, A table showing in figures the loan values, and the Loan values, 
options available under the policies each year upon default 
in premium payments, during at least the first twenty years 
of the policy, beginning with the year in which such value and 
options become available; 

Tenth, A provision that if, in event of default in premium purchase or 
payments, the value of the policy shall be applied to the meSL ate ’ 
purchase of other insurance, and if such insurance shall be in 




74 


STATE OF MICHIGAN. 


Settlement, 
due proof. 


Installment 

payments. 


Title of 
policy. 


Provisions 
not per¬ 
mitted. 


Loans. 


Limiting 

actions. 


Dating back. 


force and the original policy shall not have been surrendered 
to the company and canceled, the policy may be reinstated 
within three years from such default, upon evidence of in¬ 
surability satisfactory to the company and payment of 
arrears of premiums with interest ; 

Eleventh, A provision that when a policy shall become a 
claim by the death of the insured, settlement shall be made 
upon receipt of due proof of death, or not later than two 
months after receipt of such proof; 

Twelfth, A table showing the amounts of installments in 
which the policy may provide its proceeds may be payable; 

Thirteenth, A title on the face and on the back of the 
policy correctly describing the same. 

Any of the foregoing provisions or portion thereof relating 
to premiums not applicable to single premium policies, shall 
to that extent not be incorporated therein. 

Am. 1923 , Act 63 . 

Automatic premium provision.—Mutual Benefit Life Insurance Company v. 
Com’r of Insurance, 151 / 610 . The commissioner of insurance will not be 
required by mandamus to approve insurance policies which include a clause 
that if any premium, note or portion thereof is not paid when due the policy 
shall be void, the provision being a material change from the requirements of 
this act, as to the payment of the first premium in advance, and subsequent 
premiums, within thirty days.—Franklin Life Ins. C'o. v. Com’r of Ins., 159 / 636 . 
After the insured, who defaulted in the payment of premiums on his life in¬ 
surance policy, had given notes extending the time of payment for upwards of 
four months, again defaulted, failing to pay one of the notes, he was not en¬ 
titled to a further period of one month under the provisions of this act.—Schmed- 
ding v. Northern Assurance Co., 170 / 528 . Waiver of breach for non-payment 
of dues.—Homann v. Allgemeiner Bund. 184 / 417 . Payments of premiums by an 
insured on a life policy are voluntary, where the insured is during all the period, 
insured and has the benefits of the policy, and they cannot be recovered back. 
Payment made under protest does not change a voluntary into an involuntary 
payment.—Warren v. Fed. Life Ins. Co., 198 / 342 . In an action on a life insur¬ 
ance policy where the policy contained a recital that the premium had been 
paid, but there was evidence that a letter was sent with the policy advising 
insured that the premium was not paid, and the application provided that there 
should be no liability on the policy until it was delivered and the first premium 
paid, the court erroneously directed a verdict on the ground that there was a 
completed contract.—Christophersen v. Life Ins. Co., 199 / 634 . Limiting time 
for action on casualty policy, see Witkowski v. Fidelity & Cas. Co. of N. Y., 
218 / 22 . 

(149) Sec. 4. No policy of life insurance shall be issued 
or delivered in this state if it contain any of the following 
provisions: 

First, A provision for the forfeiture of the policy for fail¬ 
ure to repay any loan on the policy or to pay interest on 
such loan while the total indebtedness on the policy is less 
than tlie loan value thereof; or any provision for forfeiture 
for failure to repay any such loan or to pay interest thereon, 
unless such provision contain a stipulation that no such for¬ 
feiture shall occur until at least one month after notice shall 
have been mailed by the company to the last known address 
of the insured and of the assignee, if any; or a provision 
contemplating any proposed benefit not essentially a part of 
the insurance contract or any connection of the assured with 
the company other than that of policy-holder; 

Second, A provision limiting the time within which any 
action at law or in equity may be commenced to less than six 
years after the cause of action shall accrue; 

Third, A provision by which the policy shall purport to be 
issued or to take effect before the original application for 
insurance was made, if thereby the insured would rate at an 




LAWS RELATING TO INSURANCE. 


75 


age younger than liis age at date when the application was 
made, according to his age at last birthday; 

Fourth, A provision for any mode of settlement at maturity Settlement 
of less value than the amount insured by the policy plus divi- va5ue? ss 
dend additions, if any, less any indebtedness to the company 
on the policy and less any premium that may by the terms of 
the policy be deducted, payments to be made in accordance 
with the terms of the policy. This prohibition shall not apply 
to sub standard policies. 

Limitation of action.—Johnson v. Fidelity & Casualty Co., 184 / 406. 

(150) Sec. 5. Policies may be issued in this state pro-Preliminary 
viding for not more than one year preliminary term insur- method, 
mice by the incorporation therein of a clause on the face of 

the policy distinctly specifying that the first year’s insurance 
is term insurance. If the premium charged for term insur¬ 
ance under a limited payment life or endowment preliminary 
term policy providing for the payment of all premiums there¬ 
on in less than twenty years from the date of the policy, 
exceeds that charged for life insurance under twenty pay life 
preliminary term policies of the same company at the same 
age, the reserve thereon at the end of any year, including the 
first, shall not be less than the reserve on a twenty pay life Modified 
preliminary term policy issued in the same year and at the 
same age, together with an amount which shall be equivalent 
to the accumulation of a net level premium sufficient to pro¬ 
vide for a pure endowment at the end of the premium pay¬ 
ment period equal to the difference between the value at the 
end of such period for such twenty pay life preliminary term 
policy and the full reserve at such time of such a limited pay¬ 
ment, life or endowment policy. 

(151) Sec. 6. No policy of life insurance shall be issued Filing of 
or delivered in this state, until the form of the same has been orm ' 
filed with the commissioner* of insurance and after the com¬ 
missioner of insurance shall have notified any company of 

his disapproval of any form it shall be unlawful for such 
company to issue any policy in the form so disapproved. The Review, 
commissioner’s action shall be subject to review by any court 
of competent jurisdiction. 

(152) Sec. 7. The policies of a life insurance company, Apprdvai of 
not organized under the laws of this state, may, if approved poffcfes. 

by the commissioner of insurance of this state, contain any 
provision which the law of the state, territory, district or 
country under which the company is organized, prescribed 
shall be in such policies, when issued in this state, and the 
policies of a life insurance company organized under the 
laws of this state, may when issued or delivered in any other 
state, territory, district or country, contain any provision 
required by the laws of the state, territory, district or country 
in which the same are issued, anything in this act to the con¬ 
trary notwithstanding. 

For provisions relating to casualty policies, see secs. 166 and 333. 



76 


STATE OF MICHIGAN. 


Not appli¬ 
cable to an¬ 
nuities, etc. 
Proviso. 


Ascertaining 
loan indebt¬ 
edness. 


Co-operative 
and fraternal 
beneficiary 
associations. 


Copy of ap¬ 
plication 
attached. 


Revocation, 
etc., of 
license upon 
failure. 


Health and 
accident 
policies, copy 
of form, 
where filed. 


(153) Sec. 8. This sub-division shall not apply to annui¬ 
ties, industrial policies or to corporations or associations 
operating on the assessment or fraternal plan: Provided, 
That contracts may be issued in this state providing for both 
insurance and annuities on the same life, and this sub-division 
shall apply only to that part of such contracts providing for 
insurance, but every such contract providing for a deferred 
annuity on the life of the insured only, or a deferred annuity 
issued on a single life, shall, unless paid for by a single pre¬ 
mium, provide that in the event of the non-payment of any 
premium after three full years premiums shall have been paid, 
the annuity shall automatically become converted into a paid 
up annuity for such proportion of the original annuity as the 
number of completed years premiums paid bears to the total 
number of premiums required under the contract. 

(154) Sec. 9. In ascertaining the indebtedness due upon 
any loan upon any policy of insurance issued in this state, the 
interest, if not paid when due, shall be added to the principal 
of such loan, and shall bear interest at the rate specified in 
the note or loan agreement. 


Sub-Division Three. 

(155) Sec. 10. That all co-operative insurance com¬ 
panies, mutual benefit, any fraternal beneficiary associations 
doing business in the state of Michigan, shall, when requested 
by the insured, attach to every policy when issued in this 
state, an accurate copy of the application for such insurance, 
including the medical examination, family history of the 
applicant and all representations of any kind made by the 
applicant upon which the contract for insurance is based. 
If such copy of application shall not be requested by the in¬ 
sured at the time policy is issued, it shall be furnished by 
the corporation insuring at any time thereafter upon request 
of the insured in his life time, or of his representatives or 
beneficiaries after his death. 

(156) Sec. 11. If any co-operative insurance company, 
mutual benefit or fraternal beneficiary association shall fail 
to comply with the provisions of section ten, of this chapter, 
it shall be the duty of the commissioner of insurance of this 
state, upon a hearing before him after proper notice given 
to such company, to revoke the license or suspend the right of 
such company to do business within this state for such time, 
not less than three months nor exceeding one year, as to the 
commissioner shall seem just and proper. 


Sub-Division Four. 

(157) Sec. 12. Hereafter no policy of insurance against 
loss or damage from the sickness or the bodily injury or 
death of the insured by accident shall be issued or delivered 
to any person in this state until a copy of the form thereof 



LAWS RELATING TO INSURANCE. 


77 


and of the classification of risks and the premium rates per¬ 
taining thereto have been filed with the commissioner of 
insurance; nor shall it be so issued or delivered until the 
expiration of thirty days after it has been so filed, unless the 
said commissioner shall sooner give his written approval 
thereto. If the said commissioner shall notify, in writing, Notice of non- 
the company, corporation, association, society or other insurer a PP roval - 
which has filed such form that it does not comply with the 
requirements of law, specifying the reasons for his opinion, 
it shall be unlawful thereafter for any such insurer to issue 
any policy in such form. The action of the said commissioner Review, 
in this regard shall be subject to review by any court of com¬ 
petent jurisdiction; 

(158) Sec. 13. No such policy shall be so issued or deliv- when not to 
ered (1) unless the entire money and other considerations etc. issued ’ 
therefor are expressed in the policy; nor (2) unless the time 

at which the insurance thereunder takes effect and terminates 
is stated in a portion of the policy preceding its execution by 
the insurer; nor (3) if the policy purports to insure more 
than one person; nor (4) unless every printed portion thereof 
and of any endorsements or attached papers shall be plainly 
printed in type of which the face shall not be smaller than ten 
point; nor (5) unless a brief description thereof be printed 
on its first page and on its filing back in type of which the 
face shall be not smaller than fourteen point; nor (6) unless 
the exceptions of the policy be printed with the same promi¬ 
nence as the benefits to which they apply: Provided, how- Proviso, re- 
ever, That any portion of such policy which purports, by demnity ° f in 
reason of circumstances under which a loss is incurred, to 
reduce any indemnity promised therein to an amount less 
than that provided for the same loss occurring under ordi¬ 
nary circumstances, shall be printed in bold face type and 
with greater prominence than any other portion of the text 
of the policy. 

(159) Sec. 14. Every such policy so issued shall contain standard 
standard provisions, which shall be in the words and in the P rovislons - 
order hereinafter set forth and be preceded in every policy 

by the caption standard provisions.” In each such stand¬ 
ard provision wherever the word “insurer” is used, there shall 
be substituted therefor “company” or “corporation” or “asso¬ 
ciation” or “society” or such other word as will properly 
designate the insurer. Said standard provision shall be: 

(1) A standard provision relative to the contract which 
may be in either of the following two forms: Form (A) to 
be used in policies which do not provide for reduction of 
indemnity on account of change of occupation, and form (B) 
to be used in policies which do so provide. If form (B) is 
used and the policy provides indemnity against loss from sick¬ 
ness, the words “or contracts sickness” may be inserted therein 
immediately after the words “in the event that the insured 
is injured.” 

(A) 1. This policy includes the endorsements and 

attached papers if any, and contains the entire contract of 




78 


STATE OF MICHIGAN. 


insurance. No reduction shall be made in any indemnity 
herein provided by reason of change in the occupation of the 
insured or by reason of his doing any act or thing pertaining 
to any other occupation. 

(B) 1. This policy includes endorsements and attached 

papers if any, and contains the entire contract of insurance 
except as it may be modified by the insurer’s classification 
of risks and premium rates in the event that the insured is 
injured after having changed his occupation to one classified 
by the insurer as more hazardous than that stated in the 
policy, or while he is doing any act or thing pertaining to 
any occupation so classified, except ordinary duties about his 
residence or while engaged in recreation, in which event the 
insurer will pay only such portion of the indemnities pro¬ 
vided in the policy as the premium paid would have purchased 
at the rate, but within the limit so fixed by the insurer for 
such more hazardous occupation. If the law of the state 
in which the insured resides at the time this policy is issued 
required that prior to its issue a statement of the premium 
rates and classification of risks pertaining to it shall be filed 
with the state official having supervision of insurance in such 
state then the premium rates and classifications of risks 
mentioned in this policy shall mean only such as have been 
last filed by the insurer in accordance with such law, but if 
such filing is not required by such law then they shall mean 
the insurer’s premium rates and classification of risks last 
made effective by it in such state prior to the occurrence of 
the loss for which the insurer is liable. 

(2) A standard provision relative to changes in the con¬ 
tract, which shall be in the following form: 

(A) 2. No statement made by the applicant for insur¬ 

ance not included herein shall avoid the policy to be used in 
any legal proceeding hereunder. No agent has authority to 
change this policy or to waive any of its provisions. No 
change in this policy will be valid, unless approved by an 
executive officer of the insurer and such approval be endorsed 
hereon. 

(3) Standard provisions relative to reinstatement of 
policy after lapse which may be in either of the three follow¬ 
ing forms: Form (A) 'to be used in policies which insure 
only against loss from accident; form (B) to be used in 
policies which insure only against loss from sickness; and 
form (C) to be used in policies which insure against loss from 
both accident and sickness. 

(A) 3. If default be made in the payment of the agreed 
premium for this policy, the subsequent acceptance of the 
premium by the insurer or by any of its duly authorized 
agents shall reinstate the policy, but only to cover loss result¬ 
ing from accidental injury thereafter sustained. 

(B) 3. If default be made in the payment of the agreed 
premium for this policy, the subsequent acceptance of the 
premium by the insurer or by any of its duly authorized 



LAWS RELATING TO INSURANCE. 


79 


agents shall reinstate the policy but only to cover such sick¬ 
ness as may begin more than ten days after the date of such 
acceptance. 

(C) 3. If default be made in the payment of the agreed 

premium for this policy, the subsequent acceptance of the 
premium by the insurer or by any of its duly authorized 
agents shall reinstate the policy, but only to cover accidental 
injury thereafter sustained and such sickness as may begin 
more than ten days after the date of such acceptance. 

(4) A standard provision relative to time of notice of 
claim which may be in either of the three following forms: 
Form (A) to be used in policies which insure only against 
loss from accident; form (B) to be used in policies which 
insure only against loss from sickness; and form (C) to be 
used in policies which insure against loss from both acci¬ 
dent and sickness. If form (A) or form (C) is used the 
insurer may at its option add thereto the following sentence: 
‘‘In the event of accidental death immediate notice thereof 
must be given to the insurer.” 

(A) 4. Written notice of injury on which claim may be 
based must be given to the insurer within twenty days after 
the date of the accident causing such injury. 

(B) 4. Written notice of sickness on which claim may 
be based must be given to the insurer within ten days after 
the commencement of the disability from such sickness. 

(C) 4. Written notice of injury or of sickness on which 
claim may be based must be given to the insurer within 
twenty days after the date of the accident causing such in¬ 
jury or within ten days after the commencement of disability 
from such sickness. 

(5) A standard provision relative to sufficiency of notice 
of claim which shall be in the following form and in which 
the insurer shall insert in the blank space such office and its 
location as it may desire to designate for such purpose of 
notice: 

(A) 5. Such notice given by or in behalf of the insured 

or beneficiary, as the case may be, to the insurer at. 

.or to any authorized agent of the insurer, with 

particulars sufficient to identify the insured, shall be deemed 
to be notice to the insurer. Failure to give notice within 
the time provided in this policy shall not invalidate any 
claim if it shall be shown not to have been reasonably possi¬ 
ble to give such notice and that notice was given as soon as 
was reasonably possible. 

(6) A standard provision relative to furnishing forms for 
the convenience of the insured in submitting proof of loss 
as follows: 

(A) 6. The insurer upon receipt of such notice, will fur¬ 

nish to the claimant such forms as are usually furnished by 
it for filing proofs of loss. If such forms are not so fur¬ 
nished within fifteen days after the receipt of such notice, 
the claimant shall be deemed to have complied with the re¬ 
quirements of this policy as to proof of loss upon submitting 





80 


STATE OF MICHIGAN. 


within the time fixed in the policy for filing proofs of loss, 
written proof covering the occurrence, character and extent 
of the loss for which claim is made. 

(7) A standard provision relative to filing proof of loss 
shall be in such one of the following forms as may be appro¬ 
priate to the indemnities provided: 

(A) 7. Affirmative proof of loss must be furnished to 
the insurer at its said office within ninety days after the date 
of the loss for which claim is made. 

(B) 7. Affirmative proof of loss must be furnished to 
the insurer at its said office within ninety days after the 
termination of the period of disability for which the company 
is liable. 

(C) 7. Affirmative proof of loss must be furnished to 
the insurer at its said office in case of claim for loss of time 
from disability within ninety days after the termination of 
the period for which the insurer is liable and in case of 
claim for any other loss, within ninety days after the date 
of such loss. 

(8) A standard provision relative to examination of the 
person of the insured and relative to autopsy which shall be 
in the following form: 

(A) 8. The insurer shall have the right and opportunity 

to examine the person of the insured when and so often as it 
may reasonably require during the pendency of claim here¬ 
under, and also the right and opportunity to make an autopsy 
in case of death where it is not forbidden by law. 

(9) A standard provision relative to the time within 
which payments other than those for loss of time on account 
of disability shall be made which provisions may be in either 
of the following two forms and which may be omitted from 
any policy providing only indemnity for loss of time on ac¬ 
count of disability. The insurer shall insert in the blank 
space either the word “immediately” or appropriate lan¬ 
guage to designate such period of time, not more than sixty 
days, as it may desire; form (A) to be used in policies which 
do not provide indemnity for loss of time on account of dis¬ 
ability, and form (B) to be used in policies which do so 
provide. 

(A) 9. All indemnities provided in this policy will be 

paid.after receipt of due proof. 

(B) 9. All indemnities provided in this policy for loss 

other than that of time on account of disability will be 
paid.after receipt of due proof. 

(10) A standard provision relative to periodical payments 
of indemnity for loss of time on account of disability, which 
provision shall be in the following form and which may be 
omitted from any policy not providing for such indemnity. 
The insurer shall insert in the first blank space of the form, 
appropriate language to designate the proportion of accrued 
indemnity it may desire to pay, which proportion may be all 
or any part not less than one-half, and in the second blank 








LAWS RELATING TO INSURANCE. 


81 


space shall insert any period of time not exceeding sixty 
days. 

(A) 10. Upon request of the insured and subject to due 

proof of loss. accrued indemnity for loss 

of time on account of disability will be paid at the expira¬ 
tion of each.during the continuance of the 

period for which the insurer is liable, and any balance re¬ 
maining unpaid at the termination of such period will be 
paid immediately upon receipt of due proof. 

(11) A standard provision relative to indemnity payments 
which may be in either of the two following forms: Form (A) 
to be used in policies which designate a beneficiary, and form 
(B) to be used in policies which do not designate any 
beneficiary other than the insured. 

(A) 11. Indemnity for loss of life of the insured is pay¬ 
able to the beneficiary if surviving the insured, and other¬ 
wise to the estate of the insured. All other indemnities of 
this policy are payable to the insured. 

(B) 11. All indemnities of this policy are payable to the 
insured. 

(12) A standard provision providing for cancellation of 
the policy at the instance of the insured which shall be in 
the following form: 

(A) 12. If the insured shall at any time change his 

occupation to one classified by the insurer as less hazardous 
than that stated in the policy, the insurer, upon written 
request of the insured, and surrender of the policy, will cancel 
the same and will return to the insured the unearned pre¬ 
mium. 

(13) A standard provision relative to the rights of the 
beneficiary under the policy which shall be in the following 
form and which may be omitted from any policy not desig¬ 
nating a beneficiary: 

(A) 13. Consent of the beneficiary shall not be requisite 

to surrender or assignment of this policy, or to change of 
beneficiary, or to any other changes in the policy. 

(14) A standard provision limiting the time within which 
suit may be brought upon the policy as follows: 

(A) 14. No action at law or in equity shall be brought 

to recover on this policy prior to the expiration of sixty days 
after proof of loss has been filed in accordance with the 
requirements of this policy, nor shall such action be brought 
at all unless brought within two years from the expiration 
of the time within which proof of loss is required by the 
policy. 

(15) A standard provision relative to time limitations 
of the policy as follows: 

(A) 15. If any time limitation of this policy with re¬ 

spect to giving notice of claim or furnishing proof of loss 
is less than that permitted by the law of the state in which 
the insured resides at the time this policy is issued, such 
limitation is hereby extended to agree with the minimum 
period permitted by such law. 





82 


STATE OF MICHIGAN. 


Optional 

standard 

visions. 


IMMEDIATE WRITTEN NOTICE: A delay of more than six months in giving 
notice of an accident is too long under" an accident policy requiring “immediate 
written notice.”—Sweeney v. Travelers’ Ins. Co., 199 / 584. See also, Oakland 
Motor Co. v. Fidelity Co., 190 / 74. 

LIMITATION OF ACTION: Where a policy of accident insurance contained 
the proviso that if any limitation in the policy should be prohibited by statutes 
of the state in which the policy was issued the limitation should be considered 
as amended so as to conform to the minimum period of limitation permitted 
by the statutes, and where under the statutes of the state of Illinois in which 
the policy was issued, it was prohibited to insert in any life insurance policy 
a provision limiting the time within which action might be conimenced to less 
than three years from the date that the action accrued, the policy must be held 
to have been affected by the provisions of the statute and plaintiff’s right of 
action was not restricted to the period of six months after the date named 
for filing the final proofs of death, as fixed by the language of the policy.—John¬ 
son v. Fid. & Casualty Co., 184 / 406. 

(160) Sec. 15. No such policy shall be so issued or de- 
pr(> livered which contains any provision (1) relative to cancel¬ 
lation at the instance of the insurer; or, (2) limiting the 1 
amount of indemnity to a sum less than the amount stated 
in the policy and for which the premium has been paid; or, 
(3) providing for the deduction of any premium from the 
amount paid in settlement of claim; or, (4) relative to other 
insurance by the same insurer; or, (5) relative to the age 
limits of the policy; unless such provisions which are here¬ 
by designated as optional standard provisions shall be in 
the words and in the order in which they are hereinafter set 
forth, but the insurer may at its option omit from the policy 
any such optional standard provision. Such optional stand¬ 
ard provisions if inserted in the policy shall immediately 
succeed the standard provisions named in section fourteen 
of this chapter. 

(1) An optional standard provision relative to cancella¬ 
tion of the policy at the instance of the insurer as follows: 

16. The insurer may cancel this policy at any time by 
written notice delivered to the insured or mailed to his last 
address as shown by the records of the insurer, together 
with cash or the insurer’s check for the unearned portion of 
the premiums actually paid by the insured, and such cancel¬ 
lation shall be without prejudice to any claim originating 
prior thereto. 

(2) An optional standard provision relative to reduction 
of the amount of indemnity to a sum less than that stated 
in the policy as follows: 

17. If the insured shall carry with another company, cor¬ 
poration, association or society other insurance covering the 
same loss without giving written notice to the insurer, then 
in that case the insurer shall be liable only for such portion 
of the indemnity promised as the said indemnity bears to 
the total amount of like indemnity in all policies covering 
such loss, and for the return of such part of the premium 
paid as shall exceed the pro rata for the indemnity thus 
determined. 

(3) An optional standard provision relative to deduction 
of premium upon settlement of claim as follows: 

18. Upon the payment of claim hereunder any premium 
then due and unpaid or covered by any note or written order 
may be deducted therefrom. 




LAWS RELATING TO INSURANCE. 


83 


(4) An optional standard provision relative to other in¬ 
surance by the same insurer which shall be in such one of 
the following forms as may be appropriate to the indemnities 
provided, and in the blank spaces of which the insurer shall 
insert such upward limits of indemnity as are specified by 
the insurer’s classification of risks, filed as required by this 
act. 

(A) 19. If a like policy or policies, previously issued by 
the insurer to the insured be in force concurrently herewith, 

making the aggregate indemnity in excess of. 

dollars, the excess insurance shall be void and all premiums 
paid for such excess shall be returned to the insured. 

(B) 19. If a like policy or policies, previously issued by 
the insurer to the insured be in force concurrently herewith, 
making the aggregate indemnity for loss of time on account 

of disability in excess of . dollars weekly, the 

excess insurance shall be void and all premiums paid for 
such excess shall be returned to the insured. 

(C) 19. If a like policy or policies, previously issued by 
the insurer to the insured be in force concurrently herewith, 
making the aggregate indemnity for loss other than that of 

time on account of disability in excess of... 

dollars, or the aggregate indemnity for loss of time on ac¬ 
count of disability in excess of. dollars weekly, 

1 lie excess insurance of either kind shall be void and all 
premiums paid for such excess shall be returned to the in¬ 
sured. 

(5) An optional standard provision relative to the age 
limits of the policy shall be in the following form and in the 
blank spaces of which the insurer shall insert such number 
of years as it may elect. 

20. The insurance under this policy shall not cover any 

person under the age of . years nor over the age 

of.years. Any premium paid to the insurer 

for any period not covered by this policy will be returned 
upon request. 

(161) Sec. 16. No such policy shall be so issued or de- Contradictory 
livered if it contains any provision contradictory, in whole etcT 1S p?o- s ’ 
or in part, of any of the provisions hereinbefore in this sub- llibited - 
division designated as “standard provisions” or as “optional 
standard provisions”; nor shall any endorsements or at¬ 
tached papers vary, alter, extend, be used as substitute for, or 
in any way conflict with any of the said “standard pro¬ 
visions” or the said “optional standard provisions”; nor 
shall such policy be so issued or delivered if it contains any 
provision purporting to make any portion of the charter, 
constitution or by-laws of the insurer a part of the policy, 
unless such portion of the charter, constitution or by-laws 
shall be set forth in full in the policy but this prohibition 
shall not be deemed to apply to any statement of rates or 
classification of risks filed with the commissioner of insur¬ 
ance in accordance with the provisions of this act. 









84 


STATE OF MICHIGAN. 


False state¬ 
ments in 
application. 


Furnishing 
proof blanks 
not waiver of 
company 
rights. 


Alteration of 
applications. 


Policies 
issued in 
violation. 


Foreign 

policies. 


Non-applica¬ 
tion of subdi¬ 
vision. 


(162) Sec. 17. The falsity of any statement in the ap¬ 
plication for any policy covered by this chapter shall not 
bar the right to recovery thereunder unless such false state¬ 
ment was made with actual intent to deceive or unless it 
materially affected either the acceptance of the risk or the 
hazard assumed by the insurer. 

See Life Insurance Co. v. Schwartz, 221 / 498. 

(163) Sec. 18. The acknowledgment by any insurer of 
the receipt of notice given under any policy covered by this 
chapter or the furnishing of forms for filing proofs of loss, 
or the acceptance of such proofs, or the investigation of any 
claim thereunder shall not operate as a waiver of any of the 
rights of the insurer in defense of any claim arising under 
such policy. 

(164) Sec. 10. No alteration of any written application 
for insurance by erasure, insertion or otherwise, shall be 
made by any person other than the applicant without his 
written consent, and the making of any such alteration with¬ 
out the consent of the applicant shall be a misdemeanor. 
Tf such alteration shall be made by any officer of the in¬ 
surer, or by any employe of the insurer with the insurer’s 
knowledge or consent, then such act shall be deemed to have 
been performed by the insurer thereafter issuing the policy 
upon such altered application. 

(165) Sec. 20. A policy issued in violation of this chap¬ 
ter shall be held valid but shall be construed as provided in 
this chapter and when any provision in such policy is in 
conflict with any provision of this chapter the rights, duties 
and obligations of the insurer, the policy holder and the 
beneficiary shall be governed by the provisions of this chapter. 

(166) Sec. 21. The policies of insurance against acci¬ 
dental bodily injury or sickness issued by an insurer not 
organized under the laws of this state may contain, when 
issued in this state, any provision which the law of the 
state, territory or district of the United States under which 
the insurer is organized, prescribes for insertion in such 
policies, and the policies for insurance against accidental 
bodily injury or sickness issued by an insurer organized un¬ 
der the laws of this state may contain, when issued or de¬ 
livered in any other state, territory, district or country, any 
provision required by the laws of the state, territory, dis¬ 
trict or country in which the same are issued, anything in 
this chapter to the contrary notwithstanding. 

See sec. 152. 

(167) Sec. 22. Nothing in this sub-division, however, 
shall apply to or affect any policy of liability or workmen’s 
compensation insurance or any general or blanket policy of 
insurance issued to any municipal corporation or depart¬ 
ment thereof, or to any corporation, co-partnership, asso¬ 
ciation or individual employer, police or fire department, 
underwriter’s corps, salvage bureau, or like associations or 



LAWS RELATING TO INSURANCE. 


85 


organizations, where the officers, members or employes or 
classes or departments thereof are insured for their individual 
benefit against specified accidental bodily injuries or sick¬ 
ness while exposed to the hazards of the occupation or other¬ 
wise in consideration of a premium intended to cover the 
risks of all the persons insured under such policy. 

(2) Nothing in this sub-division shall apply to or in any 
way affect contracts supplemental to contracts of life or 
endowment insurance where such supplemental contracts 
contain no provisions, except such as operate to safeguard 
such insurance against lapse or to provide a special sur¬ 
render value therefor in the event that the insured shall be 
totally and permanently disabled by reason of accidental 
bodily injury or by sickness: Provided, That no such supple- Proviso, 
mental contract shall be issued or delivered to any person in 

this state, unless and until a copy of the form thereof has 
been submitted to and approved by the commissioner of in¬ 
surance, under such reasonable rules and regulations as he 
shall make concerning the provisions in such contracts and 
their submission to and approval by him. 

(3) Nothing in this subdivision shall apply to or in any 
way affect fraternal benefit societies. 

(4) The provisions of this chapter contained in clause five 
of section thirteen and clauses two, three, eight and twelve 
of section fourteen may be omitted from railroad ticket 
policies sold only at railroad stations, or at railroad ticket , 
offices by railroad employes. 

(168) Sec. 23. Any company, corporation, association, Penalty, 
society or other insurer or any officer or agent thereof, 
which or who issues or delivers to any person in this state any 
policy in wilful violation of the provisions of this sub-division 
shall be punished by a fine of not more than one hundred 
dollars for each offense, and the commissioner of insurance 

may revoke the license of any company, corporation, asso¬ 
ciation, society or other insurer of another state or country, 
or of the agent thereof, which or who wilfully violates any 
provision of this sub-division. 

Sub-Division Five. 

(169) Sec. 24. It shall be lawful for any husband to in- H ow husband 
sure his life for the benefit of his wife, and for any father to ^ D s " re ’ 
insure his life for the benefit of his children, or of any one claims. 

or more of them; and in case that any money shall become 
payable under the insurance, the same shall be payable to 
the person or persons for whose benefit the insurance Avas 
procured, his, her or their representatives or assigns, for his, 
her or their oavh use and benefit, free from all claims of the 
representatives of such husband or father, or of any of his 
creditors; and any married Avoman, either in her OAvn name 
or in the name of any third person as her trustee, may 
cause to be insured the life of her husband, or of any other 
person, for any definite period, or for the term of life, and the 



86 


STATE OF MICHIGAN. 


How married 
women may 
insure, free 
from claims. 


Death of 
wife before 
husband. 


Minors may 
insure. 


moneys that may become payable on the contract of insur¬ 
ance, shall be payable to her, her representatives or assigns, 
free from the claims of the representatives of the husband, 
or of such other person insured, or of any of his creditors; 
and in any contract of insurance, it shall be lawful to pro¬ 
vide that on the decease of the person for whose benefit it 
is obtained, before the sum insured shall become payable, the 
benefit thereof shall accrue to any other person or persons 
designated; and such other person or persons shall, on the 
happening of such contingency, become the lawful owner or 
owners of the policy of insurance, and entitled to enforce the 
same to the full extent of its terms, notwithstanding he, she 
or they may not at the time have any such insurable inter¬ 
est as would have enabled him, her or them to obtain a new 
insurance. 

A wife may insure her husband’s life in her favor, with a provision that, in 
case of her death first, the insurance be paid to their children or to their guardian, 
if under age.—Mut. Ben. Life Ins. Co. v. Bank, 68 / 116. But this section which 
protects the money payable on a life insurance policy taken out by a husband 
or father for the benefit of his wife or children, from the claims of creditors, 
does not cover the assignment , to them of a policy payable to himself, his execu¬ 
tors, or administrators or assigns.—Savings Bank v. McLean. 84 / 625. Payment 
of mutual benefit insurance to common-law wife.—Maccabees v. McAllister, 
132 / 69. Public policy does not forbid an insured selecting as his beneficiary one 
not having an insurable interest in his life.—Dolan v. Catholic Mutual Benefit 
Ass’n, 152 / 266. 

(170) Sec. 25. That it shall be lawful for any married 
woman, by herself, and in her name or in the name of any 
third person, with his assent, as her trustee, to cause to be 
insured for her sole use, the life of her husband or the life 
of any other person, in any life insurance company of any 
nature whatever, located in either of the states of the United 
States of America or in Great Britain, for any definite 
period, or for the term of his natural life; and in case of her 
surviving her husband, or such other person insured in her 
behalf, the sum or net amount of the policy of insurance due 
and payable by the terms of the insurance, shall be payable 
to her, to and for her own use, free from the claims of the 
representatives of her husband, or of such other person in¬ 
sured, or of any of his creditors, but such exemption shall 
not apply where the amount of premium annually paid shall 
exceed the sum of three hundred dollars. 

(171) Sec. 26. In case of the death of the wife before the 
decease of her husband, or of such other person insured, the 

'amount of the insurance may be made -payable after her 
death to her children, for their use, and to their guardian, 
if under age, or the amount of the policy may be disposed of 
by such married woman by a last will and testament. 

(172) Sec. 27. All contracts for life, health or accident 
insurance made by any person between the ages of sixteen 
and twenty-one years for the benefit of such minor, or for 
the benefit of his father, mother, husband, wife, child, brother 
or sister, or for the surrender of such insurance, or for the 
discharge of any money payable or benefit accruing there¬ 
under, shall be allowed to be good and of the same force and 
effect as though said minor had attained his majority at the 



LAWS RELATING TO INSURANCE. 


87 


time of making such contract: Provided, That this section Proviso, 
shall not have the effect of making a promissory note or notS^etcf 
other evidence of indebtedness given by such minor in pay¬ 
ment of premium or premiums on such contracts for insur¬ 
ance valid, either in the hands of the original owner or sub¬ 
sequent purchaser thereof. 

(173) Sec. 28. Any person who shall solicit an applica- who deemed 
tion for insurance upon the life of another shall, in any company, 
controversy between the assured or his beneficiary and the 
company issuing any policy upon such application, be re¬ 
garded as the agent of the company and not the agent of the 
assured. 

(174) Sec. 29. That all corporations, associations, part- Life insurance 
nerships, or individuals, doing business in this state under wimt a deen\ed. 
any charter, compact, agreement, or statute of this or any 

other state, involving an insurance, guaranty, contract, or 
pledge, for the payment of annuities or endowments, or for 
the payment of moneys to families, or representatives of 
policy or certificate holders or members, shall be considered 
and deemed to be life insurance companies within the mean¬ 
ing of the laws relating to life insurance within this state, 
and shall not make any such insurance, guaranty, contract, 
or pledge therein, or to or with any citizen or resident of this 
state, which shall not distinctly state therein the amount of 
such life benefits, the manner of payment, the period of the 
continuance thereof, and the amount of the annual, semi¬ 
annual or quarterly premium, or by which the payment of 
the life benefit assured shall be contingent upon the pay¬ 
ment of assessments made upon surviving members; and not 
until the securities required of life insurance companies are 
deposited, nor except in accordance with, and under the con¬ 
ditions and restrictions of, the statutes now or hereafter 
regulating the business of life insurance. And any person Soliciting be- 
soliciting applications for insurance, or making any such made! 16 ^- 1 
insurance, guaranty, contract, or pledge as aforesaid, before for - 
the deposit of such securities, or before compliance with any 
condition precedent provided by the laws of this state for life 
insurance companies, shall be liable to a penalty of one hun¬ 
dred dollars for every application obtained, or insurance, 
guaranty, contract, or pledge made, to be sued for and re¬ 
covered in the name of the people by the attorney general 
or prosecuting attorney of the proper county, either by 
action of debt or criminal prosecution; and any person who 
may have paid moneys therefor shall be entitled to recover 
the same back from the person to whom it was paid, or in 
case such person was an agent, then at his option from the 
principal of such agent, by action of assumpsit, to be brought 
at any time within six years after such payment. 

Defining “life insurance companies” within a general statute relating to such 
companies.—Citizens’ Life Ins. Co. v. Insurance Com’r, 128 / 85. A reinsurance 
contract is not within the provisions of § 9351, C. L. 1915, providing that life 
insurance companies shall not make any insurance contract with any citizen ot 
the state which shall not state distinctly the amount of life benefits, manner ot 
payment, period of continuance and amount of premiums, and that any person 
who may have paid money therefor may recover same back at any time within 
six years from date of payment.—Warren v. Fed. Life Ins. Co., 198 / 342. 



88 


STATE OF MICHIGAN. 


Stipulations, 
etc., making 
distinction, 
etc., between 
white and 
colored. 


Penalty on 
company. 


On officer or 
agent. 


False reports 
by physician 
as to bodily 
health. 


Penalty. 


(175) Sec. 30. That no life insurance company doing 
business in this state shall make any distinction or discrimi¬ 
nation between white persons and colored persons, wholly or 
partially of African descent, as to the premiums or rates 
charged for policies upon the lives of such persons, or in any 
other manner whatever; nor shall any such company demand 
or require a greater premium from such colored persons than 
is at that time required by such company from white persons 
of the same age, sex, general condition of health and prospect 
of longevity; nor make or require any rebate, diminution or 
discount upon the amount to be paid on such policy in case 
of death of such colored person insured; nor insert in the 
policy any condition, nor make any stipulation whereby such 
person insured shall bind himself or his heirs, executors, 
administrators and assigns to accept any sum less than the 
full amount or value of such policy in case of a claim accruing 
thereon by reason of the death of such person insured, other 
than such as are imposed on white persons in similar cases; 
and any such stipulations or conditions so made or inserted 
shall be void. Any company which shall violate any of the 
provisions of this section shall forfeit to the state the sum of 
five hundred dollars for each violation, to be recovered by 
the attorney general by appropriate action in any court of 
competent jurisdiction, and any judgment therefor may be 
collected in the same manner as is herein provided for collect¬ 
ing judgments rendered in favor of policy-holders. And any 
officer or agent who shall violate any of the provisions of this 
section shall be deemed guilty of a misdemeanor, and upon 
conviction thereof shall be punished by imprisonment in the 
county jail not exceeding one year, or by a fine of not less 
than fifty dollars, and not exceeding five hundred dollars, or 
by both such fine and imprisonment, in the discretion of the 
court. 

(17G) Sec. 31. Any physician who, as medical examiner 
for any life or casualty insurance company, or as the refer¬ 
ence of, or medical examiner for any person seeking insur¬ 
ance therein, shall knowingly make any false statement or 
report to the company, or any officer thereof, concerning the 
bodily health or condition of any applicant for insurance, or 
concerning any other matter or thing which might effect the 
propriety or prudence of granting such insurance, shall be 
deemed guilty of a misdemeanor, and on conviction thereof, 
shall be liable to a fine not exceeding one thousand dollars, 
or to imprisonment in the county jail not exceeding three 
months, in the discretion of the court, and he shall also be 
liable to the company in an action on the case for the full 
amount of any insurance obtained from such company by 
means or through the assistance of such false statement or 
report. 

Report of company’s examining physician as evidence on the question of the 
soundness of health of the insured.—Rhode v. Life Ins. Co., 129/112; Id., 
132 / 503. 



LAWS RELATING TO INSURANCE. 


89 


CHAPTER III.—CO-OPERATIVE, CASUALTY, ET CETERA, 

INSURANCE. 


(177) Section 1. That any number of persons, not less who may in- 
than seven, residents of this state, may incorporate for the cor P° rate - 
purpose of carrying on, upon the assessment or co-operative 

plan, the lines of casualty insurance herein enumerated. 

These associations are, strictly speaking, insurance organizations, whenever, 
in consideration of periodical contributions, they engage to pay the member or 
his designated beneficiary, a benefit upon the happening of a specified contingency. 

—Rensenhouse v. Seeley, 72/617. Rival organizations for mutual benefit insur¬ 
ance.—Great Hive L. O. T. M. Mich. v. Supreme Hive L. 0. T. M. of World, 

135 / 392. Insurable interest and selection of beneficiaries.—Dolan v. Catholic 
Mutual Benefit Ass’n, 152 / 266. When commissioner may refuse to grant certi¬ 
ficate of authority to an insurance company to do business.—Am. Health & Acci¬ 
dent Ins. Co. v. Com'r of Insurance, 154 / 193. 

(178) Sec. 2. The classes of insurance which may be classes of 
carried on by companies incorporated under this chapter shall insurance - 
be as follows: 

(a) Providing to members indemnity for disability or 
death by accident, and disability by sickness, and may pro¬ 
vide a funeral benefit not exceeding two hundred dollars 
separate or in conjunction with accident and sickness indem¬ 
nity. 

(b) Providing indemnity to members not exceeding five 
hundred dollars to any one member, for loss of position aris¬ 
ing from discharge or retirement, in companies composed of 
conductors, engineers and motormen of steam and electric 
railways, or of other similar trades or occupations. 

(c) The payment of a sum or sums of money to designat¬ 
ed beneficiaries on the death of a member or the wife of a 
member, or the payment of sick or funeral benefits, or any 
combination of the same in companies, the membership of 
which is confined to the members of a particular religious 
denomination, (voting by a two-thirds vote of all the mem¬ 
bers present after notice of intention to incorporate has been 
given by the trustees of such society) providing such death 
or funeral benefits shall not exceed twelve hundred dollars, 
and such sick benefits shall not exceed six dollars per week; 
and provided further that members of such company under 
adequate rates of assessments may insure their children from 
the age of five years to seventeen years inclusive, for a sum 
not to exceed one hundred dollars. 

(d) For the sole purpose of paying burial benefits not 
to exceed five hundred dollars, where the membership is 
limited to ages of one year to sixty years on first application 
for membership therein. 

See sec. 82 for valuation of business and maintenance of reserve by foreign 
companies upon the assessment or cooperative plan. 

LOSS OF EMPLOYMENT: Under a mutual benefit certificate providing for 
insurance against loss of employment in cases other than discharge for absence 



90 


STATE OF MICHIGAN. 


Conditions 
precedent to 
commencing 
business. 


Duty of presi 
dent and sec¬ 
retary in 
furnishing 
proof. 


Directors, or 
trustees, 
number and 
term. 


Proviso. 


Company 
books, etc., 
where kept, 
Emergency 
fund. 


Trust fund. 


Deposited 
under trust 
deeds. 


from engine, use of liquors and similar reasons, and referring to the application 
which contained the clause, “That the cause assigned by my employer for suspen¬ 
sion or discharge shall be the sole basis of determining the liability of the asso¬ 
ciation,’’ plaintiff was not entitled to recover on his own showing that the em¬ 
ployer discharged him for being absent from his engine and visiting saloons, 
and he was properly prevented at the trial from attempting to prove that he 
had been absent with leave and visited certain saloons on a mission of the super¬ 
intendent.—Palmer v. Mut. Prot. Ass’n, 189 / 35. 

(179) Sec. 3. No corporation doing business under sub¬ 
section (a) or (b) of section two hereof shall commence 
business, unless it shall have procured bona fide agreements 
for insurance therein from at least two hundred eligible per¬ 
sons, and under (d) of said section from one hundred per¬ 
sons, shall have received at least one assessment thereon in 
cash from each of such persons, according to the rate and 
plan set forth in its articles of association, which amount so 
received in cash shall aggregate for (a) at least one thou¬ 
sand dollars; for (b) two hundred dollars and for (d) one 
hundred dollars; nor until it has fully organized by the 
election of the proper and suitable officers, and the secretary 
and treasurer shall have given good and sufficient bonds to 
the association to be held by the president of the associa¬ 
tion, for the faithful performance of their duties, which 
bonds shall not be less than two thousand dollars and shall 
be at least twice the amount of money liable to come into 
their hands as such officers at any one time; said bonds to 
- be approved by the commissioner of insurance. The presi¬ 
dent and secretary of such corporation shall furnish under 
oath to the commissioner of insurance proof of such agree¬ 
ments for insurance, giving the name, residence, age and 
amount of insurance, applied for by each applicant, and the 
amount of assessment actually paid by each applicant, and 
also proof of the election and qualification of the officers, and 
the custodian of the funds of any such corporation shall 
furnish to the commissioner of insurance a certificate under 
oath that he has received and holds in trust for the benefit 
of the beneficiaries of such applicants, the sum required as 
above set forth herein. 

(180) Sec. 4. The property, business and affairs of such 
corporation, organized under the laws of this state, shall be 
managed by not less than five nor more than twenty directors 
or trustees, to be chosen by and from the members at their 
annual meeting. They shall hold office for one year, and 
until their successors are chosen: Provided, It shall be law¬ 
ful to designate the trustees or directors for the first year in 
the articles of association. 

(181) Sec. 5. The books, papers and documents of such 
corporation organized under the laws of this state shall be 
kept at its principal office. Every such corporation shall 
provide for the accumulation of an emergency fund, which 
shall not at any time be less than the maximum amount at 
risk on any one policy, which fund, together with the income 
thereon, shall be a trust fund for the payment of death 
claims, or other benefits provided for in their policies or cer¬ 
tificates. Such fund, with the increase thereof, shall be depos¬ 
ited under trust deeds, to the credit of the corporate name of 



LAWS RELATING TO INSURANCE. 


91 


the incorporation in some incorporated bank or banks, or 
may be invested by the trustees in its corporate name. An- Annual state- 
nual statements of the transactions and financial condition of ™count° hcy 
such corporation shall be made at the annual meeting of its 
members, and its certificate or policy account shall be mailed 
to every member within thirty days from the date of filing 
such statement: Provided, That any such corporation may Proviso, pre- 
provide in its policy for the payment at stated periods, of miums ’ etc * 
premiums or assessments, for the purpose of accumulating 
and maintaining and may accumulate and maintain a mor¬ 
tuary, an emergency and a reserve fund, or any one or more 
of such funds, and may provide in such policy that the mem¬ 
bers may receive the benefit of any surplus moneys not needed 
by such corporation. Nothing contained in this chapter shall 
be construed to permit any contract promising any fixed cash 
payment to any certificate or policy holder, excepting in the 
contingency of death by accident or total permanent physical 
disability, or as otherwise provided for in this chapter. Every Reserve de- 
corporation, association, or society organized under this sHt^treas 01 
chapter, except those organized under sub division (c) of urer, $ 2 , 000 . 
section two, shall maintain a reserve or emergency fund, 
which said fund shall be deposited with the state treasurer, 
and shall be the sum of two thousand dollars, except as here¬ 
inafter provided: Provided, That whenever the amount of Proviso, 
the assessments or premiums paid into the home office of any $3 ’ 000, 
such corporation, association or society shall exceed the sum 
of twenty-five thousand dollars, and shall not exceed fifty 
thousand dollars, in any one year, such reserve or emergency 
fund shall be maintained and deposited with the state treas¬ 
urer as aforesaid, in the sum of three thousand dollars: 

And provided further, That in case the amount of assessments Further pro- 
or premiums paid into the home office of any such corporation, vlso ’ $5,000, 
association or society shall exceed the sum of fifty thousand 
dollars in any one year, such reserve or emergency fund shall 
be maintained and deposited with the state treasurer as afore¬ 
said, in the sum of five thousand dollars. Such funds shall To be in cash 
be in cash or in the same class of securities required by law or secuntles - 
for the investment of funds by insurance corporations; and 
nothing herein contained shall prevent the creation and 
accumulation of other funds in excess of the amounts herein 
required to provide for the purpose of such corporation. 

Undei* the proviso, an association, when its articles are framed with respect 
thereto, is authorized to write whole-life policies, term insurance, advance pay¬ 
ment insurance, and insurance upon the joint lives of two or more persons.— 

Home Life Ins. Co. v. Maynard, 112 / 497. 

(182) Sec. 6 . Every person insured in any corporation privileges of 
organized under this chapter shall be a member of such cor- members * 
poration, and shall be entitled at all meetings of the mem¬ 
bers to at least one vote, and may vote in person or by proxy 
under such rules and regulations as may be provided in the 
by-laws of such corporation. The books of such corporation 
or association shall be open for inspection by any member of 
said organization at any of its meetings. 



92 


STATE OF MICHIGAN. 


Notice of 
•assessment, 
what to 
specify. 


Proceeds of 
policy, to 
whom paid. 


(183) Sec. 7. Every notice of an assessment or call made 
by any corporation or association organized, existing or do¬ 
ing business hereunder shall specify the amount to be paid, 
the loss or benefit for the payment of which the call or assess¬ 
ment is made, except where premiums are made payable in 
the policy at stated intervals, and the time and place for the 
payment of the same, together with a correct statement of 
the mortuary or beneficiary fund, and of the emergency fund, 
showing the receipts, disbursements, and balance at the close 
of the calendar month. 

The assessment must have been made by the proper authority and notice thereof 
must have been given by the proper officer, or there can be no forfeiture for 
non-payment.—Bates v. Detroit Mut. Ben. Ass’n, 51 / 587. Nor can the policy 
be forfeited unless the notice is in the form required by the by-laws.—Miner v. 
Mich. Mut. Ben. Ass’n, 63 / 338; Dowling v. Life Indemnity Co., 116/471. Or 
the statutes.—Warner v. Nat’l Life Ass’n, 100 / 157. Time within which assessments 
must be paid, to prevent a forfeiture of benefits, does not begin to run, in case 
of notification by mail, until the notice is received, or ought to have been re¬ 
ceived in the ordinary course of the mails.—Shelden v. National Masonic Acci¬ 
dent Ass’n, 122 / 403. In case of question as to the time within which assessments 
must be paid to ..prevent a forfeiture, the articles of association will govern, 
instead of by-laws adopted by the board of directors.—Shelden v. National 
Masonic Accident Association, 122 / 403. Life insurance policy not forfeited for 
non-payment of an assessment, when the understanding at the issuing of the 
policy was that a collector would be sent for the assessments monthly, to the 
home of the insured, and no notification was afterward given that payments 
were to be made elsewhere.—Baker v. Mich. Mut. Protective Ass’n, 118/431. 
The collection of an assessment from a member of a mutual benefit society does 
not constitute a waiver of a provision avoiding the certificate in case of untrue 
statements in the application, where the officers were not aware of any false 
statements when they accepted payments.—Finch v. Modern Woodmen of Amer¬ 
ica, 113 / 646. The acceptance of a past due assessment by a benefit society 
and its retention until after the commencement of suit constitutes a waiver of 
the right to assert a forfeiture of the certificate.—Lord v. National Protective 
Society, 134 / 357. Waiver of forfeiture for non-payment of assessment.—Jones 
v. Preferred Bankers’ Life Assurance Co., 120/211. Where the secretary of the 
lodge sent out an unauthorized assessment notice, and at a later meeting of the 
lodge he was directed to mail notices of the assessment to each member, and 
new notices were sent out pursuant to the directions, the time for complying with 
the same dated from the second notice, the action of the society amounting to 
an extension of the time in which to pay the dues.—Zender v. Royal Ark, 190 / 624. 

(184) Sec. 8. The proceeds of any certificate or policy 
issued by any such corporation or association, except such a*s 
are expressly made payable to a creditor or the legal repre¬ 
sentatives of a member, shall be payable to the beneficiary 
named therein free from all claims of the representatives of 
such member, or of any of his creditors. 

A person insured in a benefit society may, unless prohibited by the terms of 
the certificate or the rules of the society, charge the beneficiary by will with the 
payment of a debt out of the proceeds of the insurance.—Woodruff v. Tilman, 
112/188. The right, which was before inchoate and contingent, becomes, upon 
death, fixed and certain in the beneficiary. He may compel the corporation to 
levy the assessment if it refuses, after the time limited for payment.—Union 
Mut. Ass’n v. Montgomery, 70 / 595. Where the insurance is payable to certain 
parties, if living, but, if not living, then to others, the terms, ‘“if living” and 
“if not living” refer to living at the time of the death of the insured.—Id.. Proof 
of death.—Tesman v. United Friends, 103 / 185. The holder of a certificate of 
membership, which provides that suit must be brought within nine months after 
death, cannot sue after the expiration of that time.—Shackett v. Mut. Ben. Soe’y, 
107 / 65. A provision in the laws of a mutual benefit association that the deci¬ 
sion of a tribunal, created by the constitution to pass upon' death claims, 
shall be final and bar any suit at law or in equity therefor, sustained as within 
the rulings in Van Poucke v. Society, 63 / 378; Canfield v. Knights v>f Maccabees, 
87 / 626; Hembeau v. Knights of Maccabees, 101/161; Fillmore v. Maccabees, 
103 / 437; Derry v. Great Hive, L. O. T. M., 135 / 494; Barker v Great Hive. 
L. O. T. M., 135 / 499. A mutual benefit association cannot take advantage of a 
delay in furnishing proofs of loss occasioned by the neglect of duty by its own 
secretary, in supplying blanks for such proofs, after a request for the same 
by the beneficiary.—Shelden v. National Masonic Accident Ass’n, 122 / 403. When 
the right to require the submission of proofs of death in the form prescribed 
by the regulations of a mutual benefit association has been once expressly 
waived it cannot be afterward insisted upon.—Fillmore v. Maccabees, 109 / 13. 
On marriage of insured as affecting previous designation of beneficiary.—Ladies’ 



LAWS RELATING TO INSURANCE. 


93 


Aux. A. O. H. v. Flanigan, 190 / 675. The insured in a life policy of a mutual 
association whose constitution contained a provision permitting a change of 
beneficiary by signing a waiver of the first certificate was authorized to make 
the change without the assent of the beneficiary or without notice to him, be¬ 
cause under the contract he obtained no vested right in the insurance.—New 
Era Ass’n v. Kuyat, 191 / 646. There is no vested right which passes to a bene¬ 
ficiary who has no contract founded upon valuable consideration passing to the 
insured. Such vested right is not created by the possession of the policy and 
payment of the dues.—Modern Brotherhood v. Hudson, 194 / 124. 

(185) Sec. 9. No policy or certificate issued by any cor-policy not 
poration or association doing business under the provisions JjJjjJJjj ^"[ lout 
of this chapter shall be cancelled for the non-payment of notice. 

any assessment, periodical call or dues, without first having 
mailed to the holder of such policy or certificate, at his or 
her last known postoffice address, a notice stating the amount 
of such assessment, periodical call or dues, and the limit 
of time in which the same must be paid. An affidavit made Affidavit, 
by the person having charge of the mailing of such notices, 
that any such notice was mailed, stating the date of mailing 
shall be prima facie evidence thereof. 

Forfeitures of policies of insurance are not to be favored.—Milner v. Mich. 

Mut. Ben. Aas’n, 63 / 343. Mandamus will lie to restore a member of a mutual 
benefit association to membership, of which he has been unlawfully deprived.— 

Meurer v. Detroit M. B. & P. Ass’n, 95 / 451. Certificate of mutual benefit society 
held void for untrue statement in application.—Finch v. Modern Woodmen of 
America, 113 / 646. Lapse of policy for non-payment.—Geddes v. A. A. R. It. 

Employes’ Relief Ass’n, 178 / 486. Where there is doubt as to whether the 
particular question claimed to have been falsely answered was in fact asked of 
the insured a question for the jury is presented.—dark v. North American 
Union, 179/131. Admissibility of evidence of a mere clerk or bookkeeper of 
a local agent under § 13553, C. L. '15.—Rousseau v. Brotherhood of American 
Yeomen, 177 / 568; 186/101. The term “agent” does not have reference to a sub¬ 
agent whose appointment was not authorized or made by defendant corporation. 

—Id. 

(186) Sec. 10. No such corporation, association or so- Transfer or 
eiety, organized under the laws of this state, shall transfer of m risk; nce 
its risks or reinsure them in any other corporation unless approval of. 
the contract of transfer or reinsurance is first submitted to 

and approved by a two-thirds vote of a meeting of the policy 

or certificate holders of such corporation called to consider 

the same, of which meeting a written or printed notice shall 

be mailed to each policy or certificate holder at least thirty 

days before the date fixed for such meeting. Such vote or Dissolution. 

approval of a contract or reinsurance or transfer of its risks, 

shall act as a dissolution of the corporation, association or 

society; and all liability upon its certificates shall cease upon 

the expiration of five days following such vote, but its officers 

may thereafter perform any act necessary to close its affairs; 

and upon such dissolution as aforesaid the state treasurer Return of 

shall upon the written order of the commissioner of insur- reserve fund - 

ance at once return and pay over to the proper officers of such 

corporation, association or society the reserve or emergency 

fund deposited with him as hereinbefore provided. 

(187) Sec. 11. No such corporation, association or so- certain tran- 
ciety, organized under the laws of this state, shall transfer ££ s de not to be 
its risks or assets, or any part thereof, to, or reinsure its 

risks or any part thereof, in any insurance corporation or 
association of any other state or country which is not at the 
time of such transfer or reinsurance authorized to do business 
in this state, under the laws thereof. 



94 


STATE OF MICHIGAN. 


Disposition of 
reserve upon 
insolvency. 


Societies not 
affected by 
chapter. 


Fraternal 
benefit socie¬ 
ties defined. 


Lodge system 
defined. 


Representa¬ 
tive form of 
government 
defined. 


(188) Sec. 12. In event any such corporation, association 
or society be adjudged insolvent the state treasurer shall, 
upon the written order of the commissioner of insurance, 
pay over to the receiver thereof the amount remaining in 
the reserve or emergency fund deposited with him as afore¬ 
said, and the receiver shall apply said fund, or so much 
thereof as is necessary, to the payment of all outstanding 
claims or other legal indebtedness against such corporation, 
association or society, and if thereafter there remain a balance 
the same shall be paid to the proper officers of said corpora¬ 
tion, association or society. 

(189) Sec. 13. Nothing in this chapter shall be con¬ 
strued to affect the grand or subordinate lodges of the 
Independent Order of Odd Fellows, Free and Accepted 
Masons, Ancient Order of United Workmen, Knights of 
Pythias, Modern Woodmen of America, Knights of Macca¬ 
bees or other similarly conducted secret societies, maintain¬ 
ing grand or subordinate lodges, with ritualistic form of work 
and representative form of government, which may be now 
or hereafter formed for the sole benefit of members and 
their beneficiaries, and not for the profit from the business of 
insurance. 


CHAPTER IV.—FRATERNAL BENEFICIARY SOCIETIES. 

(190) Section 1. Fraternal Benefit Societies Defined. 
Any corporation, society, order or voluntary association, 
without capital stock, organized and carried on solely for 
the mutual benefit of its members and their beneficiaries, and 
not for profit, and having a lodge system with ritualistic form 
of work and representative form of government, and which 
shall make provision for the payment of benefits in accord¬ 
ance with section five hereof, is hereby declared to be a fra¬ 
ternal benefit society. 

(191) Sec. 2. Lodge System Defined. Any society having 
a supreme governing or legislative body and subordinate 
lodges or branches by whatever name known, into which 
members shall be elected, initiated and admitted in accord¬ 
ance with its constitution, laws, rules, regulations and pre¬ 
scribed ritualistic ceremonies, which subordinate lodges or 
branches shall be required by the laws of such society to hold 
regular or stated meetings at least once in each month, shall 
be deemed to be operating on the lodge system. 

Initiation being made by the by-laws a prerequisite to membership, a party who 
has not been regularly initiated on account of her physical condition cannot 
recover. Receipts and retention of dues by the grand lodge cannot be urged as 
a waiver, where it w T as based upon the mistaken belief that the insured was a 
member, the dues being tendered back immediately, upon discovery of the mis¬ 
take.—Kolosinski v. Modern Brotherhood of America, 175 / 684. 

(192) Sec. 3. Representative Form of Government De¬ 
fined. Any such society shall be deemed to have a representa¬ 
tive form of government when it shall provide in its constitu¬ 
tion and laws for a supreme legislative or governing body, 



LAWS RELATING TO INSURANCE. 


95 


composed of representatives elected either by the members 
or by delegates elected directly or indirectly by the members, 
together with such other members as may be prescribed by 
its constitution and laws: Provided, That the elective Proviso, 
members shall constitute a majority in number and have not 
less than two-thirds of the votes, nor less than the votes 
required to amend its constitution and laws: And provided Further 
further, That the meetings of the supreme or governing provlso - 
body, and the election of officers, representatives or delegates 
shall be held as often as once in four years. The members, 

■officers, representatives or delegates of a fraternal benefit so¬ 
ciety shall not vote by proxy. 

(193) Sec. 4. Exemptions. Except as herein otherwise Exemptions, 
provided, such societies shall be governed by this chapter, 

and shall be exempt from all provisions of the insurance 
laws of this state, not only in governmental relations with 
the state, but for every other purpose, and no law hereafter 
enacted shall apply to them, unless they are expressly desig¬ 
nated therein. 

(194) Sec. 5. Benefits. Sub-division 1. Every society Benefits, 
transacting business under this chapter shall provide for the 
payment of death benefits, and may provide for the payment 

of benefits in case of temporary or permanent physical dis¬ 
ability, either as the result of disease, accident or old age: 

Provided, The period of life at which the payment of benefits Proviso, old 
for disability on account of old age shall commence, shall age ' 
not be under seventy years, and may provide for monuments 
or tombstones to the memory of its deceased members, and 
for the payment of last sickness and funeral benefits. Such 
society shall have the power to give a member, when perma¬ 
nently disabled or on attaining the age of seventy, all, or 
such portion of the face value of his certificate as the laws 
of the society may provide: Provided, That nothing in this Proviso, term 
chapter contained shall be so construed as to prevent the whoie. ian 
issuing of benefit certificates for a term of years less than 
the whole of life which are payable upon the death or dis¬ 
ability of the member occurring within the term for which 
the benefit certificate may be issued. Such society shall, 
upon written application of the member, have the power to 
accept a part of the periodical contributions in cash, and 
charge the remainder, not exceeding one half of the periodical 
contribution, against the certificate with interest payable or 
compounded annually at a rate not lower than four per cent 
per annum: Provided, That this privilege shall not be Proviso, 
granted except to societies which have readjusted or may ment. ust> 
hereafter readjust their rates of contributions, and to con¬ 
tracts affected by such readjustment. 

Sub-division 2. Any society which shall show by the annual Paid-up pro- 
valuation hereinafter provided for that it is accumulating when "may "be 
and maintaining the reserve not lower than the usual reserve extended, 
computed by the American experience table and four per cent 
interest, may grant to its members extended and paid-up pro¬ 
tection, or such withdrawal equities as its constitution and 




96 


STATE OF MICHIGAN. 


Proviso, limit. 


Beneficiaries. 


Proviso, char¬ 
itable institu¬ 
tions. 


Member may 
designate. 


Proviso, 
society may 
limit scope. 
Further pro¬ 
viso, where 
no relative. 


Qualifica¬ 
tions for 
membership. 


Proviso. 


laws may provide: Provided, That such grants shall in no 
case exceed in value the portion of the reserve to the credit 
of such members to whom they are made. 

(195) Sec. 0. Beneficiaries. The payment of death bene¬ 
fits shall be confined to wife, husband, relative by blood to 
the fourth degree, father-in-law, mother-in-law, son-in-law, 
daughter-in-law, stepfather, stepmother, stepchildren, chil¬ 
dren by legal adoption, adopting parents, or to a person or 
persons dependent upon the member: Provided, That if after 
the issuance of the original certificate the member shall be¬ 
come dependent upon an incorporated charitable institution, 
he shall have the privilege with the consent of the society to 
make such institution his beneficiary. Within the above re¬ 
strictions each member shall have the right to designate his 
beneficiary and, from time to time, have the same changed in 
accordance with the laws, rules or regulations of the society, 
and no beneficiary shall have or obtain any vested interest 
in the said benefit until the same has become due and payable 
upon the death of the said member: Provided, That any 
society may by its laws limit the scope of beneficiaries 
within the above classes: Provided further, That where an 
applicant or member has no relative, as above provided, to 
whom he may make his certificate payable, in such case he 
may designate any other person or make his estate his bene¬ 
ficiary. 

Am. 1921, Act 108. 

Upon the effect of the death of assured before contemplated change of bene¬ 
ficiary is complete.—Supreme Court, I. O. F. v. Frise, 183 / 186. Effect of divorce 
upon beneficiary’s rights.—Schieler-Bund v. Knack, 184 / 95. In an interpleader 
suit against the divorced wife, and widow of a deceased member to determine 
their respective rights under a benefit certificate originally issued to the divorced 
wife as beneficiary during coverture, held, that the question of liability to the 
second wife was a proper issue for determination, and that she was entitled 
to the fund.—Knights of the Maccabees v. Brown, 186 / 284. The clerk of a local 
camp of a beneficial society who was forbidden by the by-laws of the order 
from waiving any provisions of its policies could not w T aive that portion of the 
certificate which limited the persons who might become beneficiaries under the 
policy to heirs, blood relatives, or persons dependent on the applicant or member 
of the family.—Sowiczki v. Modern Woodmen, 192 / 265. Transfer of benefits.— 
See Modern Brotherhood v. Hudson, 194 / 124. Where a by-law provides that 
benefits shall only be paid or certificates transferred to certain persons named 
in such by-laws, benefits should be paid, where the beneficiary named in a certi¬ 
ficate is not living at the death of the insured, to the persons named in the 
by-law in the order given therein, although the by-law does not so provide.— 
Switchmen’s Union v. Gillerman, 196/141. In the absence of a controlling 
statute or by-law or some contract provision on the subject, the designation of 
the wife of a beneficial association by name as the beneficiary in a benefit certi¬ 
ficate is not abrogated ipso facto by a subsequent decree of absolute divorce 
granted to the wife.—Order of Hibernians v. Mahon, 221 / 213. 

(196) Sec. 7. Qualifications for Membership. Any soci¬ 
ety may admit to beneficial membership any person not less 
than sixteen and not more than sixty years of age, who has 
been examined by a legally qualified physician, and whose 
examination has been supervised and approved in accordance 
with the laws of the society: Provided, That any beneficiary 
member of such society who shall apply for a certificate pro¬ 
viding for disability benefits, need not be required to pass an 
additional medical examination therefor. Nothing herein 
contained shall prevent such society from accepting general 
or social members. 



LAWS RELATING TO INSURANCE. 


97 


(197) Sec. 8. Certificate. Every certificate issued by any Certificate, 
such society shall specify the amount of benefit provided specify°and 
thereby, and shall provide that the certificate, the charter provide for. 
or articles of incorporation, or, if a voluntary association, 

the articles of association, the constitution and,laws of the 
society and the application for membership and medical ex¬ 
amination, signed by the applicant, and all amendments to 
each thereof, shall constitute the agreement between the 
society and the member, and copies of the same certified by 
the secretary of the society, or corresponding officer, shall 
be received in evidence of the terms and conditions thereof, 
and any changes, additions or amendments to said charter Amendment 
or articles of incorporation, or articles of association, if a et c ch to t bind 
voluntary association, constitution or laws duly made or member, etc. 
enacted subsequent to the issuance of the benefit certificate 
shall bind the member and his beneficiaries, and shall govern 
and control the agreement in all respects the same as though 
such changes, additions or amendments had been made prior 
to and were in force at the time of the apjdication for mem¬ 
bership. 

Construction of policy.—O’Brien v. Amer. Yeomen, 183 / 86. A member who 
lias been suspended may only be reinstated in strict conformity with the by-laws 
and has no rights until actual reinstatement has taken place.—Edgerly v. Ladies 
of Maccabees, 185 / 149. Notwithstanding a written waiver of the statutory 
privilege in a decedent’s application for insurance, the opinions and testimony 
of her attendijig physicians based on facts learned while they were in attend¬ 
ance as professional advisers was not admissible: The clause contained in the 
application was void as a waiver under Act 234, P. A. 1909, (Judicature Act, 
cimp. XVII. sec. 62) which creates the only exception permitted by law to the 
general privilege prevailing as to physician and patient, and limits the right of 
waiver to the heirs-at-law of decedent in a will contest.—Gilchrist v. Mystic 
Workers, 188 / 466. The basis of an estoppel of the insurer to claim fraud in 
tht making of false statements in an application for mutual benefit insurance 
as to the use of liquor and drugs, is not afforded by a mere rumor communicated 
by a local officer of the society to a deputy supreme oracle of the head camp 
after the application is signed and before the policy is signed.—Cameron v. 

Royal Neighbors, 197 / 173. 

(198) Sec. 9. Funds. Sub division 1. Any society may Funds, how 
create, maintain, invest, disburse and apply an emergency, vlsted in ' e tc. 
surplus or other similar fund in accordance with its laws. 

I'nless otherwise provided in the contract, such funds shall 
be* held, invested, and disbursed for the use and benefit of 
the society, and no member or beneficiary shall have or ac¬ 
quire individual rights therein or become entitled to any 
apportionment or the surrender of any part thereof, except as 
provided in sub-section two of section five of this chapter. The 
funds from which benefits shall be paid and the funds from 
which the expenses of the society shall be defrayed shall be de¬ 
rived from periodical or other payments by the members of 
the society and accretions of said funds: Provided, That no Proviso, 
society shall hereafter be incorporated in this state, which Xgations. 
does not provide for stated periodical contributions sufficient 
to provide for meeting the mortuary obligations contracted, 
when valued upon the basis of the national fraternal congress 
table of mortality as adopted by the national fraternal 
congress, August twenty-third, eighteen hundred ninety-nine, 
or any higher standard, with interest assumption not more 
than four per cent per annum, nor shall any such society be 



98 


STATE OF MICHIGAN. 


Fixed 

liabilities. 


Investment 
of funds. 


Proviso, re¬ 
pudiation. 


Further pro¬ 
viso, foreign 
societies. 


Distribution 
of funds. 


Who may 
organize. 


admitted to transact business in this state which does not pro¬ 
vide for stated periodical contributions sufficient to provide 
for meeting the mortuary obligations contracted, when valued 
upon one of the bases named in section twenty-three-a of 
this chapter and applicable to such society, nor write or 
accept members for temporary or permanent disability 
benefits, except upon tables based upon reliable experience, 
with an interest assumption not higher than four per cent 
per annum. 

Sub-division 2. Deferred payments or installments of 
claims shall be considered as fixed liabilities on the happening 
of the contingency upon which such payments or installments 
are thereafter to be paid. Such liability shall be the present 
value of such future payments or installments upon the rate 
of interest and mortality assumed by the society for valuation, 
and every society shall maintain a fund sufficient to meet 
such liability regardless of proposed future collections to 
meet any such liabilities. 

Upon the secession for cause of a subordinate court, the funds of the seceding 
body that was found by the trial court to be justified in withdrawing, were 
rightly retained by the local court, where, by the charter, the fund Mas raised 
wholly through voluntary contributions of the lodge and the superior court con¬ 
tributed nothing to the fund and had no interesst in it.—Foresters v. Germ.-Am. 
Foresters, 192 / 380. 

(199) Sec. 10. Investment. Every society shall invest 
its funds only in the following mentioned securities: 

(1) In bonds or notes secured by mortgage lien upon 

unencumbered real estate worth at least double the amount 
loaned. • 

(2) In the bonds of the United States, or any other coun¬ 
try, or any of the political sub divisions thereof, regularly 
formed and authorized to issue such bonds, or in the valid pub¬ 
lic debt or bonds of any county, city, township, village, school 
district, or any other legally and regularly formed district 
therein: Provided, That. such government, political sub¬ 
division, state, municipality, or district, has not in the ten 
years preceding the time of such investment repudiated its 
debt or failed to pay the same or the interest due thereon 
or upon any part of such debt: Provided further, That any 
foreign society permitted or seeking to do business in this 
state which invests its funds in accordance with the laws of 
the state or country in which it is incorporated shall be held 
to meet the requirements of this act for the investment of 
funds. 

(200) Sec. 11. Distribution of Funds. Every provision 
of the laws of the society for payment by members of such 
society, in whatever form made, shall distinctly state the 
purpose of the same and the proportion thereof which may 
be used for expenses, and no part of the money collected for 
mortuary or disability purposes or the net accretions of 
either or any of said funds shall be used for expenses. 

(201) Sec. 12. Organization. Seven or more persons, 
citizens of the United States, and a majority of whom are 
citizens of this state, who desire to form a fraternal benefit 



LAWS RELATING TO INSURANCE. 


99 


society as defined by this chapter, may make and sign (giving 
their addresses) and acknowledge before some officer com¬ 
petent to take acknowledgment of deeds, articles of incorpora- Articles of in- 
tion in which shall be stated: corporation. 

First, The proposed corporate name of the society, which 
shall not so closely resemble the name of any society or 
insurance company already transacting business in this state, 
as to mislead the public or to lead to confusion; 

Second, The purpose for which it is formed which shall 
not include more liberal powers than are granted by this 
chapter: Provided, That any lawful, social, intellectual, Proviso, 
educational, charitable, benevolent, moral or religious advan¬ 
tages may be set forth among the purposes of the society and 
the mode in which its corporate powers are to be exercised; 

Third, The names, residences and official titles of all the 
officers, trustees, directors or other persons who are to have 
and exercise the general control and management of the 
affairs and funds of the society for the first year, or .until 
fhe ensuing election at which all such officers shall be elected 
by the supreme legislative or governing body, which election 
shall be held not later than one year from the date of the 
issuance of the permanent certificate. Such articles of incor- Filing 
poration and duly certified copies of the constitution and rec i ulre(1 - 
laws, rules and regulations, and copies of all proposed forms 
of benefit certificates, applications therefor and circulars to 
be issued by such society, and a bond in the sum of five Bond, 
thousand dollars, with sureties approved by the commissioner 
of insurance, conditioned upon the return of the advance 
payments as provided in this section to applicants, if the 
organization is not completed within one year, shall be filed where filed, 
with the commissioner of insurance, who may require such 
further information as he deems necessary, and if the pur¬ 
poses of the society conform to the requirements of this 
chapter and all provisions of law have been complied with, 
the commissioner of insurance shall so certify and retain and 
record or file the articles of incorporation, and furnish the PreHminary 
incorporators a preliminary certificate authorizing said 
society to solicit members as hereinafter provided. 

Upon receipt of said certificate from the commissioner of when may 
insurance, said society may solicit members for the purpose bers.'* me,n 
of completing its organization, and shall collect from each 
applicant the amount of not less than one regular monthly 
payment, in accordance with its table of rates as provided 
by its constitution and laws, and shall issue to each such 
applicant a receipt for the amount so collected. But no such when ^may 
society shall incur any liability other than for such advanced ISy. m 
payments, nor issue any benefit certificate nor pay or allow, 
or offer or promise to pay or allow, to any person any death 
or disability benefit until actual bona fide applications for 
death benefit certificates have been secured upon at least five 
hundred lives for at least one thousand dollars each and all 
such applicants for death benefits shall have been regularly 
examined by legally qualified practicing physicians, and 



100 


STATE OF MICHIGAN. 


Advanced 
payments 
held in trust. 


Certificate of 
authority, 
issue of. 


Tenure of 

preliminary 

certificate. 


When 

articles, etc., 
void. 


certificates of such examinations have been duly filed and 
approved by the chief medical examiner of such society; nor 
until there shall be established ten subordinate lodges or 
branches into which said five hundred applicants have been 
initiated; nor until there lias been submitted to the com¬ 
missioner of insurance, under oath of the president and 
secretary, or corresponding officers of such society, a list of 
such applicants, giving their names, addresses, date examined, 
date approved, date initiated, name and number of the 
subordinate branch of which each applicant is a member, 
amount of benefits to be granted, rate of stated periodical 
contributions, which shall be sufficient to provide for meeting 
the mortuary obligations contracted, when valued for death 
benefits upon the basis of the national fraternal congress 
table of mortality, as adopted by the national fraternal 
congress August twenty-three, eighteen hundred ninety-nine, 
or any higher standard at the option of the society, and for 
disability benefits by tables based upon reliable experience, 
and ’ for combined death and permanent total disability 
benefits by tables based upon reliable experience, with an 
interest assumption not higher than four per cent per annum; 
nor until it shall be shown to the commissioner of insurance 
by the sworn statement of the treasurer, or corresponding 
officer of such society, that at least five hundred applicants 
have each paid in cash at least one regular monthly payment 
as herein provided per one thousand dollars of indemnity to 
be effected, which payments in the aggregate shall amount to 
at least twenty-five hundred dollars; all of which shall be 
credited to the mortuary or disability fund on account of 
such applicants, and no part of which may be used for 
expenses. Said advanced payments shall, during the period 
of organization, be held in trust, and, if the organization is 
not completed within one year as hereinafter provided, re¬ 
turned to said applicants. The commissioner of insurance 
may make such examination and require such further in¬ 
formation as he deems advisable, and, upon presentation of 
satisfactory evidence that the society has complied with all 
Ihe provisions of law, he shall issue to such society a certifi¬ 
cate to that effect. Such certificate shall be prima facie 
evidence of the existence of such society at the date of such 
certificate. The commissioner of insurance shall cause a 
record of such certificate to be made and a certified copy of 
such record may be given in evidence with like effect as the 
original certificate. No preliminary certificate granted under 
the provisions of this section shall be valid after one year 
from its date, or after such further period, not exceeding one* 
year, as may be authorized by the commissioner of insurance, 
upon cause shown, unless the five hundred applicants herein 
required have been secured and the organization has been 
completed as herein provided; and the articles of incorpora¬ 
tion and all proceedings thereunder shall become null and 
void in one year from the date of said preliminary certificate, 
or at the expiration of said extended period, unless such 



LAWS RELATING TO INSURANCE. 


101 


society shall have completed its organization and com¬ 
menced business as herein provided. When any domestic when charter 
society shall have discontinued business for the period of vold ' 
one year, or has less than four hundred members, its charter 
shall become null and void. Every such society shall have Power to 
i he power to make a constitution and by-laws for the govern- tutkm, c by- 4 ’ 
ment of the society, the admission of its members, the manage- laws > etc - 
merit of its affairs and the fixing and readjusting of the rates 
of contribution of its members from time to time; and it shall Amendments, 
have the power to change, alter, add to or amend such con¬ 
stitution and by-laws and shall have such other powers as 
are necessary and incidental to carrying into effect the objects 
and purposes of the society. 

(202) Sec. 13. Powers Retained — Reincorporation -— Powers re- 
Amendments. Any society now engaged in transacting corporation^ 
business in this state may exercise after the passage of this amendments, 
act all the rights conferred thereby, and all of the rights, 
powers and privileges now exercised or possessed by it under 

its charter or articles of incorporation not inconsistent with 
this chapter if incorporated; or, if it be a voluntary associa¬ 
tion, it may incorporate hereunder. But no society already 
organized shall be required to reincorporate hereunder, and 
any such society may amend its articles of incorporation 
from time to time in the manner provided therein or in its 
constitution and laws, and all such amendments shall be 
filed with the commissioner of insurance and shall become 
operative upon such filing, unless a later time be provided 
in such amendments or in its articles of incorporation, 
constitution or laws. 

(203) Sec. 14. Consolidation and mergers. No fraternal consoiida- 
benefit society organized under the laws of this state to do mergers! 
the business of life, accident, or health insurance, shall con¬ 
solidate or merge with any other fraternal benefit society, 

or reinsure its insurance risks, or any part thereof, with any 
other fraternal benefit society, or assume or reinsure the 
whole or any portion of the risks of any other fraternal 
benefit society, except as herein provided. No fraternal bene¬ 
fit society or subordinate body thereof shall merge, consoli¬ 
date with or be reinsured by any company or association not 
licensed to transact business as a fraternal beneficiary so¬ 
ciety. 

Am. 1923, Act 51. 

(204) Sec. 14-a. When any such fraternal benefit society proposed 
shall propose to consolidate or merge its business or to enter ^bmuted. h ° w 
into any contract of reinsurance, or to assume or reinsure 

the whole or any portion of the risks of any other fraternal 
benefit society the proposed contract in writing setting forth 
the terms and conditions of such proposed consolidation, 
merger or reinsurance shall be submitted to the legislative 
or governing bodies of each of said parties to said contract 
after due notice, and, if approved by a vote of two-thirds 
of the members of the supreme legislative or governing body 



102 


STATE OF MICHIGAN. 


Approval of 
commissioner. 


Proviso, 

financial 

statement. 


Other states. 


When merger, 
etc., effective. 


Expense, how 
paid. 


Proviso, com¬ 
missions. 


Itemized 

expense 

statement. 


of each of said societies, such contract, as so approved, shall 
be submitted to the commissioner of insurance of this state 
for his approval and the parties to said contract shall at the 
same time submit a sworn statement showing the financial 
condition of each of such fraternal benefit societies as of the 
thirty-first day of December preceding the date of such con¬ 
tract: Provided, That such insurance commissioner may, 
within his discretion, require such financial statement to be 
submitted as of the last day of the month preceding the date 
of such contract. The commissioner of insurance shall there¬ 
upon consider such contract of consolidation, merger or rein¬ 
surance, and, if satisfied that the interests of the certificate 
holders of such fraternal benefit societies are properly pro¬ 
tected, and that such contract is just and equitable to the 
members of each of such societies, and that no reasonable 
objection exists thereto, shall approve said contract as sub¬ 
mitted. In case the parties corporate to such contract shall 
have been incorporated in separate states, or territories, such 
contract shall be submitted as herein provided to the com¬ 
missioner of insurance of each of such incorporating states, 
or territories, to be considered and approved separately by 
each of such commissioners of insurance. When said contract 
of consolidation, merger or reinsurance shall have been ap¬ 
proved as hereinabove provided, such commissioner or com¬ 
missioners of insurance shall issue a certificate to that effect, 
and thereupon the said contract of consolidation, merger or 
reinsurance shall be in full force and effect. In case such 
contract is not approved the fact of its submission and its 
contents shall not be disclosed by the commissioner of insur¬ 
ance. 

Added 1923, Act 51. 

(205) Sec. 14-b. All necessary and actual expenses and 
compensation incident to the proceedings provided hereby 
shall be paid as provided by such contract of consolidation, 
merger or reinsurance: Provided, however, That no broker¬ 
age or commission shall be included in such expenses and 
compensation or shall be paid to any person by either of the 
parties to any such contract in connection with the negotia¬ 
tion therefor or execution thereof, nor shall any compensa¬ 
tion be paid to any officer or employes of either of the parties 
to such contract for directly or indirectly aiding in effecting 
such contract of consolidation, merger or reinsurance. An 
itemized statement of all such expenses shall be filed with 
the insurance commissioner, or commissioners, as the case 
may be, subject to approval, and when approved the same 
shall be binding on the parties thereto. Except as fully ex¬ 
pressed in the contract of consolidation, merger or reinsur¬ 
ance, or itemized statement of expenses, as approved by the 
commissioner or commissioners of insurance, as the case may 
be, no compensation shall be paid to any person or persons, 
and no officer or employe of the state shall receive any com¬ 
pensation, directly or indirectly, for in any manner aiding, 




LAWS RELATING TO INSURANCE. 


103 


promoting or assisting any such consolidation, merger or re¬ 
insurance. 

Added Id. 

(206) Sec. 14-c. Penalties. Any person violating any of Penalty, 
the provisions of the three sections next preceding this sec¬ 
tion shall be guilty of a felony, and upon conviction shall be 
liable to a line of not more than live thousand dollars, or to- 
imprisonment for not more than live years, or to both line 

and imprisonment. 

Added Id. 

(207) Sec. 15. Annual License. Societies which are now Annual 
authorized to transact business in this state may continue llcense - 
such business until the first day of April next succeeding the 
passage of this act, and the authority of such societies may 
thereafter be renewed annually, but in all cases to terminate 

on the first day of the succeeding April: Provided, how- Proviso, 
ever, The license shall continue in full force and effect until 
the new license be issued or specifically refused. For each Fee. 
such license or renewal the society shall pay the commis¬ 
sioner of insurance five dollars. A duly certified copy or 
duplicate of such license shall be prima facie evidence that 
the licensee is a fraternal benefit society within the meaning 
of this chapter. 

(208) Sec. 16. Admission of Foreign Society. No foreign Admission of 
society now transacting business, organized prior to the fjjciety. 
passage of this act, which is not now authorized to transact 
business in this state, shall transact any business herein 
without a license from the commissioner of insurance. Any Documents 
such society shall be entitled to a license to transact business filed - 
within this state upon filing with the commissioner a duly 
certified copy of its charter or articles of association; a 

copy of its constitution and laws, certified by its secretary 
or corresponding officer; a power of attorney to the com¬ 
missioner as hereinafter provided; a statement of its busi¬ 
ness under oath of its president and secretary, or correspond¬ 
ing officers, in the form required by the commissioner, duly 
verified by an examination made by the supervising insur¬ 
ance official of its home state or other state satisfactory to 
the commissioner of insurance of this state; a certificate 
from the proper official in its home state, province or coun¬ 
try, that the society is legally organized; a copy of its con¬ 
tract, which must show that benefits are provided for by 
periodical, or other payments by persons holding similar 
contracts; and upon furnishing the commissioner such other 
information as he may deem necessary to a proper exhibit 
of its business and plan of working, and upon showing that 
its assets are invested in accordance with the laws of the 
state, territory, district, province or country where it is 
organized, he shall issue a license to such society to do busi¬ 
ness in this state until the first day of the succeeding April, 
and such license shall, upon compliance with the provisions 





104 


STATE OF MICHIGAN. 


Proviso. 


Fee. 


Proviso. 


Service of 
process. 


In duplicate. 


Proviso, when 
not binding. 


of this chapter, be renewed annually, but in all cases to ter¬ 
minate on the first day of the succeeding April: Provided, 
however, That license shall continue in full force and effect 
until the new license be issued or specifically refused. Any 
foreign soqiety desiring admission to this state, shall have 
the qualifications required of domestic societies organized 
under this chapter, and have its assets invested as required 
by the laws of the state, territory, district, country, or prov¬ 
ince where it is organized. For each such license or renewal 
the society shall pay the commissioner five dollars. When 
the commissioner refuses to license any society, or revokes 
its authority to do business in this state, he shall reduce his 
ruling, order or decision to writing and file the same in his 
office, and shall furnish a copy thereof, together with a state¬ 
ment of his reasons, to the officer of the society, upon request, 
and the action of the commissioner shall be reviewable by 
proper proceedings in any court of competent jurisdiction 
within the state: Provided, however, That nothing contained 
in this or the preceding section shall be taken or construed 
as preventing any such society from continuing in good faith 
all contracts made in this state during the time such society 
was legally authorized to transact business herein. 

(209) Sec. 17. Power of Attorney and Service of Process. 
Every society, whether domestic or foreign, now transacting 
business in this state shall, within thirty days after the pas¬ 
sage of this act, and every such society hereafter applying 
for admission, shall, before being licensed, appoint in writing 
the commissioner of insurance and his successors in office 
to be its true and lawful attorney, upon whom all legal 
process in any action or proceeding against it shall be served, 
and in such writing shall agree that any lawful process 
against it which is served upon such attorney shall be of the 
same legal force and validity as if served upon the society, 
and that the authority shall continue in force so long as any 
liability remains outstanding in this state. Copies of such 
appointment, certified by said commissioner of insurance, 
shall be deemed sufficient evidence thereof and shall be 
admitted in evidence with the same force and effect as the 
original thereof might be admitted. Service shall only be 
made upon such attorney, must be made in duplicate upon 
the commissioner of insurance, or, in his absence upon the 
person in charge of his office, and shall be deemed sufficient 
service upon such society: Provided, however, That no such 
service shall be valid or binding against any such society 
when it is required thereunder to file its answer, pleading 
or defense in less than thirty days from the date of mailing 
the copy of such service to such society. When legal process 
against any such society is served upon said commissioner 
of insurance he shall forthwith forward by registered mail 
one of the duplicate copies prepaid and directed to its secre¬ 
tary or corresponding officer. Legal process shall not be 
served upon any such society except in the manner provided 
herein. 



LAWS RELATING TO INSURANCE. 


105 


Service of process on agent.—Farrow v. Railway Conductors’ Cooperative Pro¬ 
tective Association, 178 / 639. Appearance to object to the jurisdiction of the 
court is not a submission to the jurisdiction or a general appearance.—Id.« 

(210) Sec; 18. Place of Meeting—Location of Office. Any 
domestic society may provide that the meetings of its legis¬ 
lative or governing body may be held in any state, district, 
province or territory wherein such society has subordinate 
branches, and all business transacted at such meetings shall 
be as valid in all respects as if such meetings were held in 
this state; but its principal office shall be located in this 
state. 

(211) Sec. 19. No Personal Liability. Officers and 
members of the supreme, grand or any subordinate body of 
any such incorporated society shall not be individually liable 
for the payment of any disability or death benefit provided 
for in the laws and agreements of such society; but the same 
shall be payable only out of the funds of such society and 
in the manner provided by its laws. 

(212) Sec. 20. Waiver of the Provisions of the Laws. 
The constitution and laws of the society may provide that 
no subordinate body, nor any of its subordinate officers or 
members shall have the power or authority to waive any of 
the provisions of the laws and constitution of the society, 
and the same shall be binding on the society and each and 
every member thereof and on all beneficiaries of members. 

(213) Sec. 21. Benefit not Attachable. No money or 
other benefit, charity or relief or aid to be paid, provided 
or rendered by any such society shall be liable to attachment, 
garnishment or other process, or be seized, taken, appropri¬ 
ated or applied by any legal or equitable process or operation 
of law to pay any debt or liability of a member or beneficiary, 
or any other person who may have a right thereunder, either 
before or after payment. 

(214) Sec. 22. Constitution and Laws—Amendment. 
Every society transacting business under this chapter shall 
file with the commissioner of insurance a duly certified copy 
of all amendments of or additions to its constitution and 
laws within ninety days after the enactment of the same. 
Printed copies of the constitution and laws as amended, 
changed or added to, certified by the secretary or corre¬ 
sponding officer of the society, shall be prima facie evidence 
of the legal adoption thereof. 

(215) Sec. 23. Annual Reports. Every society trans¬ 
acting business in this state shall annually, on or before 
the first day of March, file with the commissioner of insur¬ 
ance, in such form as he may require, a statement under oath 
of its president and secretary or corresponding officers, of its 
condition and standing on the thirty-first day of December 
next preceding and of its transactions for the year ending on 
that date, and also shall furnish such other information as 
the commissioner may deem necessary to a proper exhibit 
of its business and plan of working. The commissioner may 
at other times require any further statement he may deem 


Place of meet¬ 
ing; location 
of office. 


No personal 
liability. 


Waiver of 
provisions of 
laws. 


Benefit not. 
attachable. 


Amendment 
of constitu¬ 
tion and laws. 


Annual and 

valuation 

reports. 



106 


STATE OF MICHIGAN. 


Proviso, first 
report. 

What to 
show. 


Legal mini¬ 
mum stand¬ 
ard. 


Disability 

benefits. 


Proviso. 


Test of 
solvency. 


Printed re¬ 
ports sent to 
members. 


necessary to be made relating to such society. In addition 
to the annual report herein required, each society shall 
annually report to the commissioner a valuation of its certi¬ 
ficates in force on December thirty-first, last preceding; 
excluding those issued within the year for which the report is 
filed, in cases where the contributions for the first year in 
whole or in part are used for current mortality and expenses: 
Provided, The first report of valuation shall be made as of 
December thirty-first, nineteen hundred fourteen. Such re¬ 
port of valuation shall show, as contingent liabilities, the 
present mid year value of the promised benefits provided in 
the constitution and laws of such society under certificates 
then subject to valuation; and as contingent assets the 
present midyear value of the future net contributions pro¬ 
vided in the constitution and laws as the same are in practice 
actually collected. At the option of any society, in lieu of 
the above, the valuation may show the net value of the 
certificates subject to valuation hereinbefore provided, and 
said net value, when computed in case of monthly contribu¬ 
tions, may be the mean of the terminal values for the end of 
the preceding and of the current insurance years. Such 
valuation shall be certified by a competent accountant or 
actuary, or, at the request and expense of the society, verified 
by the actuary of the department of insurance of the home 
state of the society, and shall be filed with the commissioner 
within ninety days after the submission of the last preceding- 
annual report. The legal minimum standard of valuation 
for all certificates, except for disability benefits, shall be the 
national fraternal congress table of mortality as adopted by 
the national fraternal congress, August twenty-third, eighteen 
hundred ninety-nine, or, at the option of the society, any 
higher table; or, at its option, it may use a table based upon 
the society’s own experience of at least twenty years and 
covering not less than one hundred thousand lives with 
interest assumption not more than four per centum per 
annum. Each such valuation report shall set forth clearly 
and fully the mortality and interest basis and the method 
of valuation. Any society providing for disability benefits 
shall keep the net contributions for such benefits in a fund 
separate and apart from all other benefit and expense funds 
and the valuation of all other business of the society: 
Provided, That where a combined contribution table is used 
by a society for both death and permanent total disability 
benefits, the valuation shall be according to tables of reliable 
experience, and in such case a separation of the funds shall 
not be required. The valuation herein provided for shall 
not be considered or regarded as a test of the financial 
solvency of the society, but each society shall be held to be 
legally solvent so long as the funds in its possession are equal 
to or in excess of its matured liabilities. Beginning with 
the year nineteen hundred fourteen, a report of such valuation 
and an explanation-of the facts concerning the condition of 
the society thereby disclosed shall be printed and mailed to 



LAWS RELATING TO INSURANCE. 


107 


('jicli beneficiary member of the society not later than June 
first of each year; or, in lieu thereof, such report of valuation 
and showing of the society’s condition as thereby disclosed 
may be published in the society’s official paper and the issue 
containing the same mailed to each beneficiary member of the 
society. The laws of such society shall provide that if the Provision un¬ 
stated periodical contributions of the members are insufficient deficlencies - 
to pay all matured death and disability claims in full, and 
to provide for the creation and maintenance of the funds 
required by its laws, additional, increased or extra rates 
of contribution shall be collected from the members to meet 
such deficiency; and such laws may provide that upon the 
written application or consent of the member, his certificate 
may be charged with its proportion of any deficiency disclosed 
by valuation, with interest not exceeding five per centum 
per annum. 

(216) Sec. 23-A. Provisions to Insure Future Security. Provisions to 
If the valuation of the certificates, as hereinbefore provided, s2curfty future 
on December thirty-one, nineteen hundred seventeen, shall 
show that the present value of future net contributions, 
together with the admitted assets, is less than the present 
value of the promised benefits and accrued liabilities, such 
society shall thereafter maintain said financial condition at 
each succeeding triennial valuation in respect of the degree 
of deficiency as shown in the valuation as of December thirty- 
one, nineteen hundred seventeen. If at any succeeding tri- Triennial 
ennial valuation such society does not show at least the valuatlon - 
same condition, the commissioner shall direct that it there¬ 
after comply with the requirements herein specified. If the 
next succeeding triennial valuation after the receipt of such 
notice shall show that the society has failed to maintain the 
condition required herein, the commissioner may, in the 
absence of good cause shown for such failure, institute pro¬ 
ceedings for the dissolution of such society, in accordance 
with the provisions of section twenty-four of this chapter, or 
in the case of a foreign society, its license may be cancelled in 
the manner provided in this chapter. Any such society, 
shown by any triennial valuation, subsequent to December 
thirty-one, nineteen hundred seventeen, not to have main¬ 
tained the condition herein required, shall, within two years, 
thereafter, make such improvement as to show a percentage 
of deficiency not greater than as of December thirty-one, 
nineteen hundred seventeen, or thereafter as to all new mem¬ 
bers admitted, be subject, so far as stated rates of contribu¬ 
tions are concerned, to the provisions of section twelve of 
this chapter, applicable in the organization of new societies: 

Provided, That the net mortuary or beneficiary contributions proviso, new 
and funds of such new members shall be kept separate and members - 
apart from the other funds of the society. If such required 
improvement is not shown by the succeeding triennial valu¬ 
ation, then the said new members may be placed in a sepa¬ 
rate class and their certificates valued as an independent 
society in respect of contributions and funds: Provided, Proviso. 




108 


STATE OF MICHIGAN. 


Increase of 
rates volun¬ 
tarily. 


“Accumula¬ 
tion basis.” 


Cost of insur¬ 
ance. 


“Tabular 

basis.” 


Proviso, de¬ 
ficiency. 


Deficiency, 
how met. 


however, That whenever the supreme body of any domestic 
society shall voluntarily determine that it is necessary for the 
future solvency of the society to increase the rate of the 
assessments charged by the society, then before such increase 
shall become effective the question shall be submitted and 
approved by a majority vote of the members voting thereon. 
The submission of such vote shall be held at the lodge rooms 
of the different societies at a regular meeting thereof, after 
due notice to the members of such submission. 

(217) Sec. 23-B. In lieu of the requirements of sections 
twenty-three and twenty-three-A, any society accepting in its 
laws the provisions of this section may value its certificates 
on a basis herein designated “accumulation basis” by credit¬ 
ing each member with the net amount contributed for each 
year and with interest at approximately the net rate earned, 
and by charging him with his share of the losses for each year, 
herein designated “cost of insurance” and carrying the bal¬ 
ance, if any, to his credit. The charge for the cost of the 
insurance may be according to the actual experience of the 
society applied to a table of mortality recognized by the law 
of this state, and shall take into consideration the amount 
at risk during each year, which shall be the amount payable 
at death less the credit to the member. Except as specifically 
provided in its articles or laws or contracts no charge shall be 
carried forward from the first valuation hereunder against 
any member for any past share of losses exceeding the con¬ 
tributions and credit. If, after the first valuation, any mem¬ 
ber’s share of losses for any year exceeds his credit including 
Ihe contribution for the year, the contribution shall be 
increased to cover his share of the losses. Any such excess 
share of losses chargeable to any member may be paid out of 
a fund or contributions especially created or required for 
such purpose. Any member may transfer to any plan adopted 
by the society with net rates on which tabular reserves are 
maintained, and on such transfer shall be entitled to make 
such application of his credit as provided in the laws of the 
society. Certificates issued, rerated or readjusted on a basis 
providing for adequate rates with adequate reserves to mature 
such certificates upon assumptions for mortality and interest 
recognized by the law of this state, shall be valued on such 
basis, herein designated the “tabular basis”: Provided, That 
if on the first valuation under this section a deficiency in 
reserve shall be shown for any such certificate, the same shall 
be valued on the accumulation basis. Whenever in any so¬ 
ciety having members upon the tabular basis and upon the 
accumulation basis, the total of all costs of insurance pro¬ 
vided for any year shall be insufficient to meet the actual and 
disability losses for the year, the deficiency shall be met for 
the year from the available funds after setting aside all 
credits in the reserve; or from increased contributions or by 
an increase in the number of assessments applied to the so¬ 
ciety as a whole or to classes of members as may be specified 
in its laws. Savings from a lower amount of death losses 



LAWS RELATING TO INSURANCE. 


109 


may be returned in like manner as may be specified in its 
laws. If the laws of the society so provide, the assets repre- 
senting the reserves of any separate class of members may be 
carried separately for such class as if in an independent 
society, and the required reserve accumulation of such class 
so set apart shall not thereafter be mingled with the assets 
of other classes of the society. A table showing the credits 
t° individual members for each age and year of entry and 
showing opposite each credit the tabular reserve required 
on the whole life or other plan of insurance specified in the 
contract, according to assumptions for mortality and interest 
recognized by the law of this state and adopted by the so¬ 
ciety, shall be filed by the society with each annual report 
and also be furnished to each member before July first of 
each year. In lieu of the aforesaid statement there may be 
furnished to each member within the same time a statement 
giving the credit for such member, and giving the tabular 
reserve and level rate required for a transfer carrying out 
the plan of insurance specified in the contract. No table 
or statement need be made or furnished where the reserves 
are maintained on the tabular basis. For this purpose, in¬ 
dividual bookkeeping accounts for each member shall not 
be required, and all calculations may be made by actual 
methods. Nothing herein contained shall prevent the main¬ 
tenance of such surplus over and above the credits on the 
accumulation basis and the reserves on the tabular basis as 
the society may provide by or pursuant to its laws; nor be 
construed as giving to the individual member any right or 
claim to any such reserve or credit other than in manner as 
expressed in the contract and its laws; nor as making any 
such reserve or credits a liability in determining the legal 
solvency of the society. 

(218) Sec. 24. Examination of Domestic Societies. The 
commissioner of insurance, or any person be may appoint, 
shall have the power of visitation and examination into the 
affairs of any domestic society. He may employ assistants for 
the purpose of such examination, and he, or any person he 
may appoint, shall have free access to all the books, papers 
and documents that relate to the business of the society and 
may summon and qualify as witness under oath and examine 
its officers, agents and employes or other persons in relation 
to the affairs, transactions and condition of the society. The 
expense of such examination shall be paid by the society 
examined, upon statement furnished by the commissioner of 
insurance, and the examination shall be made at least once 
in three years. Whenever after examination the commis¬ 
sioner of insurance is satisfied that any domestic society has 
failed to comply with any provisions of this chapter, or is 
exceeding its powers, or is not carrying out its contracts in 
good faith, or is transacting business fraudulently; or when¬ 
ever any domestic society, after the existence of one year or 
more, shall have a membership of less than four hundred or 
shall determine to discontinue business, the commissioner of 


Methods. 


Statement to 
member. 


Accounting. 


Examination 
of domestic 
societies. 


Assistants. 


Expense, 
how paid. 


When re¬ 
ceiver may 
be appointed. 



110 


STATE OF MICHIGAN. 


Notice given. 


Application 
for receiver. 


Examination 
of foreign 
societies. 


Assistants. 


Expenses, 
how paid. 


Revocation of 
license. 


No adverse 
publications. 


insurance may present the facts relating thereto to the attor¬ 
ney general, who shall, if he deem the circumstances warrant, 
commence an action in quo warranto in a court of competent 
jurisdiction, and such court shall thereupon notify the officers 
of such society of a hearing, and if it shall then appear that 
such society should be closed, said society shall be enjoined 
from carrying on any further business, and some person shall 
be appointed receiver of such society, and shall proceed at 
once to take possession of the books, papers, moneys and 
other assets of the society, and shall forthwith, under the 
direction of the court, proceed to close the affairs of the 
society and to distribute its funds to those entitled thereto. 
No such proceedings shall be commenced by the attorney gen¬ 
eral against any such society until after notice has been duly 
served on the chief executive officers of the society and a rea¬ 
sonable opportunity given to it, on a date to be named in said 
notice, to show cause why such proceedings should not be 
commenced. 

(219) Sec. 25. Application for Receiver, Etc. No appli¬ 
cation for injunction against or proceedings for the dissolu¬ 
tion of or the appointment of a receiver for any such domestic 
society or branch thereof shall be entertained by any court in 
this state, unless the same is made by the attorney general. 

(220) Sec. 26. Examination of Foreign Societies. The 
commissioner of insurance, or any person whom he may 
appoint, may examine any foreign society transacting or 
applying for admission to transact business in this state. The 
said commissioner may employ assistants and he, or any 
person he may appoint, shall have free access to all the 
books, papers and documents that relate to the business of 
the society, and may summon and qualify as witness under 
oath and examine its officers, agents and employes and other 
persons in relation to the affairs, transactions and condi¬ 
tions of the society. He may, in his discretion, accept in 
lieu of such examination the examination of the insurance 
department of the state, territory, district, province or coun¬ 
try where such society is organized. The actual expenses 
of examiners making any such examination shall be paid by 
the society upon statement furnished by the commissioner of 
insurance. If any such society or its officers refuse to sub¬ 
mit to such examination or to comply with the provisions of 
the section relative thereto, the authority of such society to 
write new business in this state shall be suspended or license 
refused until satisfactory evidence is furnished the commis¬ 
sioner relating to the condition and affairs of the society, and 
during such suspension the society shall not write new busi¬ 
ness in this state. 

(221) Sec. 27. No Adverse Publications. Pending, dur¬ 
ing or after an examination or investigation of any such 
society either domestic or foreign, the commissioner of insur¬ 
ance shall make public no financial statement, report or 
finding, nor shall he permit to become public any financial 
statement, report or finding affecting the status, standing or 



LAWS RELATING TO INSURANCE. 


Ill 


rights of any such society, until a copy thereof shall have 
been served upon such society, at its home office, nor until 
such society shall have been afforded a reasonable oppor¬ 
tunity to answer any such financial statement, report or 
finding, and to make such showing in connection therewith as 
it may desire. 

(222) Sec. 28. Revocation of License. When the com- Revocation of 
missioner of insurance on investigation is satisfied that any 1,cense - 
foreign society transacting business under this chapter has 
exceeded its powers, or has failed to comply with any pro¬ 
visions of this chapter, or is conducting business fraudulently, 

or is not carrying out its contracts in good faith, he shall Notice 
notify the society of his findings, and state in writing the glven * 
grounds of his dissatisfaction, and after reasonable notice 
require said society, on a date named, to show cause why 
its license should not be revoked. If on the date named in 
said notice such objections have not been removed to the 
satisfaction of the said commissioner or the society does 
not present good and sufficient reasons why its authority to 
transact business in this state should not at that time be 
revoked, he may revoke the authority of the society to continue 
business in this state. All decisions and findings of the com- Review, 
missioner made under the provisions of this section may be 
reviewed by proper proceedings in any court of competent 
jurisdiction, as provided in section sixteen of this chapter. 

(223) Sec. 29. Exemption of Certain Societies. Nothing certain 
contained in this chapter shall be construed to affect or apply tempted, 
to grand or subordinate lodges of Masons, Odd Fellows or 
Knights of Pythias (exclusive of the insurance department 

of the Supreme Lodge Knights of Pythias), and the Junior 
Order of United American Mechanics (exclusive of the bene¬ 
ficiary degree of insurance branch of the National Council 
Junior Order of United American Mechanics), labor organiza¬ 
tions or societies which limit their membership to any one 
occupation or religious denomination, nor to similar societies 
which do not issue insurance certificates, nor to an association 
of local lodges of a society now doing business in this state 
which provides death benefits not exceeding five hundred 
dollars to any one person, or disability benefits not exceeding 
three hundred dollars in any one year to any one person, or 
both, nor to any contracts of reinsurance business on such 
plan in this state nor to domestic societies which limit their 
membership to the employes of a particular city or town, 
designated firm, business house or corporation, nor to 
domestic lodges, orders or associations of a purely religious, 
charitable and benevolent description, which do not provide 
for a death benefit of more than one hundred fifty dollars, 
or for disability benefits of more than one hundred fifty 
dollars to any one person in any one year. The commissioner How deter _ 
of insurance may require from any society such information mined, 
as will enable him to determine whether such society is 



112 


STATE OF MICHIGAN. 


Certain fra¬ 
ternal benefit 
societies may 
be licensed 
within 
chapter. 


Tax 

exempt. 


Penalty. 


exempt from the provisions of this chapter. Any fraternal 
benefit society, heretofore organized and incorporated and 
operating within the definition set forth in sections one, two 
and three of this chapter, providing for benefits in case of 
death or disability resulting solely from accidents, but which 
does not obligate itself to pay death or sick benefits, may be 
licensed under the provisions of this chapter, and shall have 
all the privileges and shall be subject to all the provisions 
and regulations of this chapter, except that the provisions 
of this chapter requiring medical examinations, valuations 
of benefit certificates, and that the certificate shall specify 
the amount of benefits, shall not apply to such society. 

See section 129. 

See Order of Hibernians v. Mahon, 221/210. 

(224) Sec. 30. Taxation. Every fraternal benefit society 
organized or licensed under this chapter is hereby declared 
to be a charitable and benevolent institution, and all of its 
funds shall be exempt' from all and every state, county, 
district, municipal apd school tax, other than taxes on real 
estate and office equipment. 

(225) Sec. 31. Penalties. Any person, officer, member 
or examining physician of any society authorized to do busi¬ 
ness under this chapter, who shall knowingly or wilfully 
make any false or fraudulent statement or representation in 
or with reference to any application for membership, or for 
the purpose of obtaining money from or benefit in any society 
transacting business under this chapter, shall be guilty of a 
misdemeanor, and upon conviction thereof shall be punished 
by a fine of not less than one hundred dollars nor more 
than five hundred dollars, or imprisonment in the county jail 
for not less than thirty days nor more than one year, or both, 
in the discretion of the court; and any person who shall wil¬ 
fully make a false statement of any material fact or thing 
in a sworn statement as to the death or disability of a certifi¬ 
cate holder in any such society for the purpose of procuring 
payment of a benefit named in the certificate of such holder, 
and any person who shall wilfully make any false statement 
in any verified report or declaration under oath required or 
authorized by this act, elsewhere than by sections fourteen-a 
or fourteen-b, shall be guilty of perjury and shall be pro¬ 
ceeded against and punished as provided by the statutes of 
this state in relation to the crime of perjury. Any person 
who shall solicit membership for, or in any manner assist 
in procuring membership in any fraternal benefit society not 
licensed to do business in this state, or who shall solicit mem¬ 
bership for, or in any manner assist in procuring membership 
in any such society not authorized as herein provided to do 
business as herein defined in this state, shall be guilty of a 
misdemeanor, and upon conviction thereof shall be punished 
by a fine of not less than fifty nor more than two hundred 
dollars. Any society, or any officer, agent or employe thereof 
neglecting or refusing to comply with, or violating any of the 



LAWS RELATING TO INSURANCE. 


113 


provisions of this chapter, the penalty for which neglect, re¬ 
fusal or violation is not specified in this section, or in sec¬ 
tion fourteen-c, shall be fined not exceeding two hundred 
dollars upon conviction thereof. 

Am. 1923, Act 51. 


PART FOUR.—FIRE, MARINE, AUTOMOBILE AND 
OTHER INSURANCE. 


CHAPTER I.—INCORPORATION OF COMPANIES. 


Sub-Division One. 


(226) Section 1. Any number of persons, not less than Number may 
seven, may associate together and form an incorporated incorporate, 
company for any or all of the following purposes, to-wit: 

First, To make insurance on dwelling houses, stores, and Fire, wind 
all kinds of buildings, and upon household furniture, goods, f t n c d water ’ 
wares and merchandise, and any other property, against loss 
or damage by fire, lightning, wind and water; and also against 
bombardment and or explosion, whether fire ensues or not, 
but not to include steam boiler or flywheel explosion: 

Second, To make insurance as aforesaid upon vessels, inland 
freights, goods, wares, merchandise and other property, marine - 
against the risks of inland navigation and transportation; 

Third, To make insurance upon automobiles, whether Automobile, 
stationary or being operated under their own power, which 
shall include all or any of the hazards of fire, explosion, 
transportation, collision, loss by legal liability for damage to 
property resulting from the maintenance and use of auto¬ 
mobiles, and loss by burglary or theft or both, but shall not 
include insurance against loss by reason of bodily injury to 
the person; 

Fourth, To make insurance upon vessels, freights, goods, Ocean marine, 
wares, merchandise, specie, bullion, jewels, profits, commis¬ 
sions, bank notes, bills of exchange and other evidences of 
debt, bottomry and respondentia interests and every insur¬ 
ance appertaining to or connected with ocean marine risks: 

Provided, however, That any corporation including in its Proviso, 
charter a provision to assume any of the risks specified in capital, 
this sub-section must have an unimpaired capital paid in 
in cash of not less than four hundred thousand dollars. 


INSURANCE CONTRACT: An agreement by which one party, for a considera¬ 
tion promises to make a certain payment of money upon the destruction or 
injury of something in which the other has an interest.—Rwisenhouse v. Seeley, 
72 / 617. The underlying principle is complete ldemnity.—Wardle v. Townsend, 
7> / 391 A policy, or a delivery thereof, is not essential to the contract. Mich. 
Pipe Co. v. Insurance Co., 92 / 491. Nor need the premiums be expressly agreed 
noon and paid, or credit expressly given, to make a valid contract. Id. A • 
contract of insurance is executed by the insured by payment of the premium, 
while it is executory by the company.—Clawson v. Fire Ins. Co., 121 / 5Jl. 
Insurance is a personal contract and does not pass with the title to the premises. 
—Disbrow v. Jones, Har. 48. On buildings, it is personal and not real.-Clay 



114 


STATE OF MICHIGAN. 


F. & M. Ins. Co. v. Salt & Lumber Co., 31 / 346. Divisibility of insurance con¬ 
tract.—'Aetna Ins. Co. v. Resh, 44 / 55. Does not enure to benefit of strangers.— 
Perrott v. Shearer, 17/48. When this rule does not apply.—Monaghan v. Ag 1 

F. Ins. Co., 53 / 238. A written application, the policy and the note given in 
payment are parts of the same transaction and should be construed together.— 
Am. Ins. Co. v. Stoy, 41 / 385. The charter and by-laws of a stock company do 
not constitute a part of the contract of insurance, unless made so by special 
agreement.—Id. When there is no contract.—Lumber Co. v. Insurance Co., 96 / 20. 
An insurance contract, so far as the public is concerned, stands on no different 
basis from other contracts.—Armstrong v. Insurance Co., 96 / 137. One who accepts 
a policy of insurance, issued upon his written application, cannot ignore the 
written contract of insurance and sue on a preliminary parol agreement with 
the agent for a policy of different form: his remedy, in case of fraud or mistake, 
being the reformation of the contract by a court of equity.—Kleis v. Niagara F. 
Ins. Co., 117 / 469. 

APPLICATION: Relation of application to insurance contract.—Peoria M. & F. 
Ins. Co. v. Perkins, 16 / 380; Throop v. N. A. F. Ins. Co., 19 / 423; Am. Ins. Co. v. 
Stoy, 41 / 385; Kleis v. Niagara F. Ins. Co., 117 / 469. Ambiguous statements 
and answers therein.—Aetna L. S., etc.. Ins. Co. v. Olmstead, 21 / 246 ; N. A. F. 
Ins. Co. v. Throop, 22 / 146. As to the statements in, being warranties.—Peoria 
M. & F. Ins. Co. v. Perkins, 16 / 380; Throop v. N. A. F. Ins. Co., 19 / 423; Am. 
Ins. Co. v. Gilbert, 27 / 429; Van Buren v. St. Joseph Co., etc., Ins. Co., 28 / 398. 
Where a policy of fire insurance is issued upon the written application of the 
insured, such application becomes a part of the contract and the statements 
therein have the force of warranties, though it is not) referred to in the policy.— 
Cronin v. Fire Association, 123 / 277. When the application is made a warranty, 
misstatements therein invalidate the insurance.—Aetna Ins. Co. v. Resh, 40 / 241. 
The statement of an applicant for insurance that he holds the property sought 
to be insured on contract, does not, in itself, amount to a misrepresentation, 
although the contract runs to himself and wife.—Miotke v. Insurance Co., 
113/166. Although it may be conceded that by inference defendant’s charter 
required a written application, yet in the absence of a provision strictly forbid¬ 
ding parol applications, plaintiff’s claim of a parol application and its accept¬ 
ance defendant’s agent should be submitted to the jury.—(Leonard v. Farmers’ 
Mut. Fire Ins. Co., 192 / 230. 

CONCEALMENT OR FAILURE TO DISCLOSE: Failure to state fact of pending 
litigation over the premises insured, held not to vitiate policy.—Hill v. Lafayette 
Ins. Co., 2 / 476. Untrue statements as to incumbrances and fears of incendiarism. 
—N. A. F. Ins. Co. v. Throop, 22 / 146. Failure to disclose the amount of inter¬ 
est when required, invalidates.—Ag’l Ins. Co. v. Montague, 38 / 548. A statement 
of absolute title, when the property is held by the applicant and wife, avoids.— 
Aetna Ins. Co. v. Resh, 40 / 241. The failure to disclose a mortgage given on 
the homestead by the wife alone does not avoid.—Watertown Ins. Co. v. 

G. & B. Sew. Mach. Co., 41 / 131. Effect of misstatements and concealments, etc., 
when the application is filled out by the agent of the insurer.—N. A. F. Ins. Co., 
v. Throop. 22 / 146; Am. Ins. Co. v. Gilbert, 27 / 429; Van Buren v. St. Joseph, 
etc., Co., 28 / 398; Mich. St. Ins. Co. v. Lewis, 30/41. Or where the conduct 
or statements of the agent have misled the insured.—Westchester F. Ins. Co. v. 
Earle, 33 / 143. 

PROPERTY AND INTERESTS INSURED: Not necessary that the precise 
nature of the interest insured should appear in the application unless distinctly 
required. Insurance made for various parties having several, as well as joint 
interests, is good for all.—Castner v. Insurance Co., 46 / 18. An estate by entirety 
is an insurable interest in the whole premises.—Clawson v. Cit. Mut. F. Ins. Co!, 
121/591. Insurance in property in which the insured has no interest is void.— 
O'Hara v. Carpenter, 23/416. Insurance taken in good faith on goods belonging 
to the wife of the insured is void, even though the company has full knowledge 
of the facts of ownership.—Ag’l Ins. Co. v. Montague, 38 / 548. But parties 
having the custody of property belonging to others as factors, agents and” con¬ 
signees, may insure for the benefit of the owners.—Castner v. Farmers’ Mut. 
Ins. Co., 46/18. The prohibitory liquor law of 1855 did not invalidate insurance 
upon intoxicating liquors.—Niagara F. Ins. Co. v. DeGraff, 12 / 124. When in¬ 
surance by a partner upon firm property is considered to be for the firm and when 
upon his own interest only.—Peoria M. & F. Ins. Co. v. Hall, 12 / 202. See In¬ 
surance Co. v. Verdier, 33 / 138. Insuring a class of goods as a “stock of 
groceries,” includes what is usually contained in it, whether extra hazardous 
or not.—Niagara F. Ins. Co. v. DeGraff, 12 / 137. One-story addition just back 
of the building insured deemed to be a part of it.—Boyer v. Fire Ins. Co.. 
124 / 455. A description construed.—N. A. F. Ins. Co. v. Throop, 22 / 146. Silver 
forks and tea and table spoons are not included in the term “plate,” so as to 
be excluded from a policy by a clause excluding “money, bullion, jewels, plate 
and watches.” unless particularly specified.—Hanover F. Ins. Co. v. Mannasson, 
29 / 316. Milk cans arc “packages” within the terms of a fire insurance policy 
covering merchandise on a creamery, consisting of butter and cheese, and all 
materials and supplies, “including packages.”—Cronin v. Fire Association. 112/106 
Sufficient statement of valuation.—Residence F. Ins. Co. v. Hannawold 37/103 
Over-valuation.—Am. Ins. Co. v. Gilbert, 27 / 429; Farmers’ Mut. F. Ins. Co v. 
Crampton, 43 / 421; McIntyre v. Mich. St. Ins. Co., 52 / 188; English v. Franklin 
F. Ins. Co., 55 / 273; Schmidt v. Mut. C. & V. F. Ins. Co., 55 / 432. Location of 
property.—Benton v. Farm. Mut. F. Ins. Co., 102 / 281. Insurable interest; sale 
of property insured.—Fuhrman v. Sun Insurance Office of London, 180 / 439 In 
marine insurance the word “survey” imports only a plan and description of the 
then existing mode and use of property.—Macatawa Transportation Co v Fire¬ 
men’s Fund Ins. Co., 179 / 443. 

TITLE AND OWNERSHIP: Effect of failure to disclose nature and extent 
of interest in the property insured.—Clay F. & M. Ins. Co. v. Salt & Lumber 



LAWS RELATING TO INSURANCE. 


115 


Co.. 31 / 346. See, also, Ag’l Ins. Co. v. Montague, 38 / 548; Aetna Ins. Co. v. 
Hesh, 40 / 241; compare Farmers’ Mut. F. Ins. Co. v. Gargett, 42 / 289. A viola¬ 
tion of the conditions as to ownership of the property invalidates the policy.—• 
Miller v. Amazon Ins. Co., 46 / 463. In the absence of a distinct requirement, it 
is not necessary that the exact state of the title be explained.—Castner v. 
Farmers’ Mut. F. Ins. Co., 46/15. The equitable title in the assured is sufficient. 
—Farmers’ Ins. Co. v. Fogelman, 35 / 481. Title under land contract.—Hamil¬ 
ton v. Insurance Co., 98 / 535; Knop v. Insurance Co., 101 / 359. A husband has 
an insurable interest in real property held under a contract running to himself 
and wife jointly.—-Miotke v. Insurance Co., 113/166. The insurer is not re¬ 
quired to inquire into the condition of the title.—Wierengo v. Insurance Co., 
98 / 621. In the provision, “wherever in this policy the word ‘insured’ occurs, 
it shall be held to include the legal representative of the insured” contained in 
the standard insurance policy, the term “legal representative” refers to those 
who succeed to the insured’s legal rights by reason of his death or transfer of 
the policy.—Metzger v. Manchester F. Ass. Co., 102 / 334. The purchasers under 
land contract who paid up their contract, simply increased their interest, and 
although they had obtained a warranty deed of the premises after the issuance 
of the policy there was no such change of interest as to avoid the policy.—• 
Houran v. Aetna Ins. Co., 183 / 418. Insurable interest, see, Marx v. Fire Ins. 
Co., 192 / 497. Title to insured property.—Wilms v. N. Hamp. Fire Ins. Co., 
194 / 656. Where one verbally applies for fire insurance and he is not asked 
as to the state of the title, and does not act fraudulently, he is not required to 
disclose the exact condition of the title.—Crossman v. Am. Ins. Co., 198 / 304. 
One partner may insure his interest in partnership property in his own name.— 
Freeman v. Mitchell, 198 / 215. 

POLICY: Except where prevented by the statute of frauds, or some other 
equivalent prohibition, a policy of insurance may be made or changed by parol; 
and the fact that a policy is written does not prevent its change by subsequent 
parol agreement, or its enlargement or continuance.—Westchester F. Ins. Co. v. 
Earle, 33 / 143; Roger Williams Ins. Co. v. Carrington, 43 / 252, 256. An actual 
manual delivery of the policy is not necessary to make the contract effectual.— 
Home Ins. Co. v. Curtis, 32 / 402. Nor is any policy necessary to the validity 
of the contract.—Mich. Pipe Co. v. Ins. Co., 92 / 491. See Lawrence v. Griswold, 
30 / 410. The acceptance of the policy concludes the bargain with the insurer 
and excludes any parol promises for the future inconsistent with it.—Hartford 
F. Ins. Co. v. Davenport, 37 / 609. As to the countersigning of the policy and 

the waiver of the same.—Hibernia Ins. Co. v. O’Connor, 29 / 241; Westchester 

F. Ins. Co. v. Earle, 33 / 151. The construction of a policy is for the court.— 
Lapeer, etc., Ass’n v. Doyle, 30 / 159. The supreme court will not construe an 
insurance policy or other contract, upon mere stipulations of counsel as to its 
legal effect.—Am. Ins. Co. v. Reed, 40 / 622. All parts of an insurance policy are 
to be harmonized and given effect, if it can be consistently done.—Jackson v. 
Brit. Am. As. Co., 106 / 50. The person to wdiom a policy is issued and in whose 
name it stands is its legal owner.—'Hart. F. Ins. Co. v. Davenport, 37 / 609. The 
assignee of the entire interest in a policy can sue thereon in his own name.— 
Watertown Ins. Co. v. G. & B. Sew. Mach. Co., 41 / 131. Separate interests under 
the same policy may be united by assignment to one person who may sue on it.— 

Mercantile Ins. Co. v. Holthaus, 43 / 423. There can be no' splitting of causes of 

action on a policy; the party who can enforce the wffiole of it must sue.—Hart. 
F. Ins. Co. v. Davenport, 37 / 609. But where each of several persons insured 
by the same policy have distinct insurable interests, they can enforce their rights 
in equity, if they cannot at law.—Mercantile Ins. Co. v. Holthaus, 43 / 424. Limit¬ 
ation of action on policy by contract.—Peoria Ins. Co. v. Hall, 12 / 202. Pre¬ 
sumption as to where the policy was executed.—Am. Ins. Co. v. Woodruff, 34/6; 
Am. Ins. Co. v. Cutler, 36 / 261. A policy written by an agent upon his own 
property is not binding until it is approved by the company.—Zimmerman v. 
Insurance Co., 110 / 399. Where plaintiff applies for insurance upon a frame 
building which was occupied at' the time as a mission house in wffiich religious 
services w T ere held, and defendant's agent had knowledge that the policy covered 
a building used for such purpose, but in issuing the policy a rider was attached 
to the contract, stating that the policy covered the premises while occupied as a 
private dwelling, defendant was estopped to claim that the policy was invalid 
on the ground that it covered only the premises wdiile occupied as a dwelling 
house —Simpson v. Ohio Farmer’s Ins. Co., 184 / 547. Reasonable requirements in 
contract.—Gordon v. Ins. Co., 197 / 226. What constitutes insurable interest.— 
Crossman v. Am. Ins. Co., 198 / 304. 

NEW CONTRACT: Where fire insurance policies on lumber were assigned to 
the buyer with the consent of the insurer, the effect was new contracts of insur¬ 
ance issued to the buyer as ow r ner of the lumber.—Wilms v. N. Hamp. Fire Ins. 
Co., 194 / 656. 

CONDITIONS IN. POLICIES: That a policy should become void while the pre¬ 
mium note remained due and unpaid, if not paid at maturity, held valid.— 
Williams v. Alb. City Ins. Co., 19/451. See Conti. L. Ins. Co. v. Willets, 24 / 268. 
Fire insurance policy made void by violation of conditions.—Cronin v. Fire 
Ass’n of Philadelphia, 123 / 277; Vanderlogen v. Manchester Fire Assurance Co., 
123 / 291. Construction of condition absolving insurers in case property becomes 
unoccupied or vacant.—Aurora F. & M. Ins. Co. v. Kranich, 36 / 289. For 
further construction of the vacancy clause in insurance policies, see Stupetski 
v. Insurance Co., 43 / 373; Hopkins Mfg. Co. v. Insurance Co., 48 / 148, 150; 
Becker v. Insurance Co., 48/610; Shackelton v. Sun Fire Office, 55 / 288; 
Bonenfant v. Insurance Co., 76 / 653; Fritz v. Insurance Co., 78 / 565; Richards 
v Insurance Co., 83 / 508; Hill v. Insurance Co., 99 / 466. See, also, Residence 
F. Ins. Co. v. Hannaw'old, 37 / 103; Hart. F. Ins. Co. v. Davenport, 37 / 609. 
Temporary absence held not to create vacant property.—Raymond v. Farmers’ 



116 


STATE OF MICHIGAN. 


Mut. Fire Ins. Co., 114 / 386. Company’s liability under vacancy permit repre¬ 
sented by the agent to the insured as having been issued by the company and 
attached to the policy.—Morgan v. Illinois Ins. Co., 130 / 427. A condition in a 
tire insurance policy avoiding it, if the manufacturing establishment insured 
ceases operation for more than ten consecutive days is reasonable and proper.— 
Cronin v. Fire Association, 119/74. Policy avoided by breach of such condition.— 
Cronin v. Fire Ass’n, 127/612. A clause providing for forfeiture of the policy, 
if assigned without the company’s consent, cannot prevent its assignment after 
the loss.—Insurance Co. v. Carrington, 43 / 252. The insurer is not required to 
inform the insured of all the conditions and terms of the policy or to read it 
to him.—Wierengo v. Am. F. Ins. Co., 98 / 621. There is no impediment to agree¬ 
ments for forfeitures in lire insurance policies, if parties choose to make them.— 
Allen v. Insurance Co., 106 / 204. Forfeiture clauses must be explicit.—Residence 
F. Ins. Co. v. Hannawold, 37 / 103. And must be strictly construed.—Westchester 
F. Ins. Co. v. Earle, 33 / 143; Olmstead v. Farmers’ Mut. F. Ins. Co., 50 / 200; 
Lyon v. Trav. Ins. Co., 55 / 142. Blind and misleading conditions disapproved.— 
Westchester F. Ins. Co. v Earle, 33 / 152. Conditions relative to additional in¬ 
surance must be strictly complied with.—Security Ins. Co. v. Fay, 22 / 467. See 
Cont. Ins. Co. v. Horton, 28 / 173. As to effect of additional insurance, see Sun 
Ins. Co. v. Earle, 20 / 406. Waiver of such conditions.—Westchester F. Ins. Co. 
v. Earle, 33 / 143. When company deemed to have notice of prior insurance on 
property.—Power v. Monitor Insurance Co., 121 / 364. When the company is 
estopped to claim that a policy was avoided by additional insurance.—Rauch v. 
Mut. Fire Ins. Co., 131 / 281. Breach of condition is not excused by good faith.— 
Penn. F. Ins. Co. v. Kittle, 39 / 51. Policy avoided by careless, though not in¬ 
tentionally false statement on oath regarding loss.—Knop v. Insurance Co., 
107 / 323. Recovery allowed notwithstanding outstanding policies in other com¬ 
panies.—Liverpool, etc., Ins. Co. v. Verdier, 35 / 395; Emery v. Mutual, etc.. Ins. 
Co., 51 / 469; Kitchen v. Hart. F. Ins. Co., 57 / 135. A policy conditioned that, 
“in case of any sale, transfer or change of title in the property insured, such 
insurance shall be void and cease,” is avoided by a conveyance absolute in form, 
though given merely as security.—West. Mass. Ins. Co. v. Riker, 10 / 279. Policy 
avoided by change of interest in property insured.—Excelsior Foundry Co. v. 
Western Assurance Co., 135 / 467. Where a deed is executed and recorded, but 
not delivered, and there is no intention on the part of the grantor of passing 
the title, it does not pass, and does not constitute a breach of the condition of a 
policy against any “change, of the title or ownership” of the property insured.— 
Hogadone v. Grange Mut. Fire Ins. Co., 133 / 339. Removal of insured property' 
with consent of agent and liability of company'.—Bennett v. Underwriters’ Ass’n, 
130/216. A policy of insurance on a steam iire-engine, etc., while located and 
contained in the fire-engine house “and not elsewhere,” does not cover such 
property while being used at a fire several hundred feet from that building.— 
Village of L’Anse v. Fire Ass’n of Philadelphia, 119 / 427. Condition as to use 
of gasoline.—Smith v. Insurance Co., 107 / 270. Fire insurance policy avoided 
for the storing of gasoline.—Boy'er v. Grand Rapids Fire Ins. Co., 124 / 455. For¬ 
feited, if kerosene oil is drawn on the premises in any other manner than as 
specified in the standard form.—Vanderlogen v. Fire Assurance Co., 123 / 291. 
Under a policy stipulating that it should be void if the insured concealed or 
misrepresented any material fact, etc., such as the name of one of the co-partners, 
the concealment of the name of one of the members of the firm, amounted to 
fraud and avoided the policy.—Jacobs v. Queen Ins. Co., 183 / 512, 195 / 18. 

WAIVER: When and how forfeiture clauses are deemed waived and insurers 
are estopped from insisting upon them.—Hart. F. Ins. Co. v. Davenport, 37 / 609. 
Security Ins. Co. v. Fay, 22 / 467; Williams v. Alb. City Ins. Co., 19/451; Penn. 
F. Ins. Co. v. Kittle, 39/51. The conditions of an insurance policy may be 
waived by the company not only by express agreement, but by conduct which 
amounts to an estoppel.—Miotke v. Insurance Co., 113/166. The question of 
waiver is one of intent and is a proper subject of inference from surrounding 
circumstances.—Hibernia Ins. Co. v. O’Connor, 29 / 241. Generally a question 
of fact for the jury.—Chapman v. Colby, 47 / 46; Dayton v. Monroe, 47 / 193; 
Penn. F. Ins. Co. v. Kittle, 39/51. Knowledge of and acquiescence in, violations 
of conditions in policies operate as a waiver of the same by an insurance com¬ 
pany.—Match Co. v. Fire Ins. Co., 122 / 256. Waiver by tlie company of right 
to claim a forfeiture of the policy.—Granger v. Manchester Fire Assurance Co., 
119/177. Waiver of conditions as to additional insurance.—Westchester F. Ins. 
Co. v. Earle, 33 / 143. The mere knowledge of the company that additional 
insurance has been obtained without its consent, cannot be deemed a waiver.— 
Allemania F. Ins. Co. v. Hurd, 37/11. It is waived if the adjusting agent, with 
full knowledge thereof, calls for proofs of loss and puts the insured to the 
trouble and expense of making the same, without informing him that the for¬ 
feiture will be urged.—Penn. F. Ins. Co. v. Kittle, 39/51. Waiver, of a condition 
in a fire insurance policy that it should be void if additional insurance was ob¬ 
tained without having the fact indorsed upon the policy, is a question for the 
jury where the evidence is conflicting.—Walter v. Fire* Insurance Co., 120 / 35. 
Waiver of condition avoiding policy, in case of other insurance procured with¬ 
out written permission.—Kotwicki v. Thuringia Ins. Co., 134 / 82. A condition in 
a policy that it shall be void if the insured building “be or become vacant and 
so remain for 10 days” is not waived by the fact that, at the time an agent of 
the company consents to an assignment of the policy, he is informed that the 
building is then unoccupied.—Ranspach v. Teutonia Fire Ins. Co., 109 / 699. 
Waiver of condition as to vacancy of premises not established.—Sutherland v. 
F. & M. Ins. Co., 110 / 668. Waiver of provision in policy avoiding the same in 
case of foreclosure proceedings begun.—Cronin v. Fire Association, 119/74. Or 
provision against incumbering personal property by chattel mortgage.—Rediker 
v. Insurance Co., 107 / 224. Waiver of condition of acceptance of risk, as to 
clearing away logs and brush for 100 feet around the building insured.—Duby 




LAWS RELATING TO INSURANCE. 


117 



formal nrnnf ie \ ’• ^’Connor, 29 / 241. Waiver of strict 

lPnhn?fv P hv 0f thi V e r dls ° of all precedent requirements.—Id. A denial of 

amounts b fo waiver' th f , reas0I \, that the policy had been cancelled 
amounts to waiver ot proofs of loss.—Morgan v. Illinois Ins Co 130 / 427 

Kranidi ° V/ to f time of making proofs.—Aurora, etc., ’ins. Co. v! 

matter he 3 a 6 llowP/i t« A Jf f m an . Insure r to a claimant, asking that the 

r h?« mf pv l 1 rest until the 1 adjuster of the company can see the claimant 

fTirn iShffSnvnnfJ i cr ° a provision in the policy limiting the time for 

furnishing proofs of loss and beginning action.—Turner v. Fidelity & Casualty 

Holthanc tl 5 i a 9 a W A Ver i -° f f l efect . s 111 P roofs of loss.—Mercantile Ins. Co. v. 
ment« of ill l/ ’ A S laim of ’ waiver of Proofs of loss, based upon verbal state¬ 
ments of the company s agent, cannot be sustained.—Wadhams, Ryan & Reule 

f ” astern Assurance Co., 117/514. An insurance company, by placing its 

wJiveJ ?riif a t 0SS sol f el y upon the ground that the policy had been cancelled, 
\\ awes its right to assert other defenses.—Douville v. Farmers’ Mut. F. Ins. Co., 
114/158 a waiver is a voluntary relinquishment of a known right.—Dahrooge 
v Rochester German Ins. Co., 177 / 442. Where an insurance company sends an 
acljustei to inquire into a loss, and he denies all liability of the company under 
the policy, such action will be held a waiver of proofs of loss by the company.— 

opa v. Noi them Ins. Co., 192 / 237. As to when peremptory refusal to pay bv an 
authorized agent is waiver of right to suit.—Id. An adjuster when acting in 
, e P n e of his employment, has authority to w r aive presentation of proofs of 
loss by denying liability of the company; and his authority may be implied 
where the company informed plaintiff that the adjuster was looking after its in¬ 
terest, bisk v. Fire Ass'n of Phila., 192 / 243. Waiver of defense based on war¬ 
ranties and forfeitures.—Veenstra v. Fire Ins Co., 195 / 55. The denial of liability 
on part of insurance company by its adjusters constitutes a waiver of the filing of 
proofs of^ loss.—Fisk v. Liverpool, etc., Ins. Co., 198 / 270. 

RENEWAL OF POLICY: Each renewal is a new contract and is subject to the 
local laws in force at the time of renewal.—Brady v. Insurance Co., 11 /425. 
I hough amounting to a new contract, it in no way changes the terms and condi¬ 
tions of the original policy, except as they continue it in force, but the rights of 
the parties are governed by the provisions of the original policy.—Aurora F. & M. 
Ins. Co. v. Kranich, 36 / 289. Renewal of canceled policy by agent.—Hart. F. 
Ins. Co. v. Reynolds, 36 / 502. 

SURRENDER OF POLICY: A surrender of an insurance policy, such as to 
discharge the insured from liability on a premium note, under an arrangement 
that, upon such surrender, the note should be delivered up, must be accompanied 
by a dealing immediately and directly with the company or its agents; a delivery 
to a stranger, with notice to the company, is not enough.—Am. Ins. Co. v. Wood¬ 
ruff. 34/6. A member of a mutual benefit corporation withdrawing, is obligated 
to pay, not only all regular assessments outstanding against him, but also all 
other sums that might lawfully be made the subject of assessment at the time 
of surrender, and it is payable at once on ascertainment.—Patrons’ Mut. Fire 
Ins. Co. v. Butler, 193 / 648. 

CANCELLATION OF POLICY: An insurance company cannot cancel a policy, 
which has been delivered and the premium paid, without notifying the assured 
and returning or offering to return the unearned premium.—Home Ins. Co. v. 
Curtis, 32 / 402; Krause v. Assurance Co., 99 / 464. Where the same person is 
at once agent for the insurance company and for the policy holder, the latter 
is bound by notice to the agent of the cancellation of the policy and by the 
return or credit of the premium to the agent.—Hart. Fire Ins. Co. v. Reynolds, 
36 / 502. Where a policy is given up for cancellation and a smaller one taken, 
under fraud and misrepresentation by the agent, it will be re-established if action 
is seasonably taken.—Tabor v. Mich. Mut. L. Ins. Co., 44 / 324. Unauthorized 
cancellation of life insurance policy.—Shields v. Equitable Life Assurance Society, 
121 / 690. Authority of agent to cancel.—Kooistra v. Rockford Ins. Co., 122 / 626. 

REVIVOR OP’ POLICY: A policy forfeited by breach of condition, cannot be 
revived by any act of waiver or estoppel, unless done upon full knowledge of 
the facts.—Security Ins. Co. v. Fay. 22 / 467. It cannot be revived by anything 
short of a new contract, on a valid consideration, or such conduct, as by mis¬ 
leading tbe insured to his prejudice, would operate as an estoppel.—N. Y. Cent. 
Ins. Co. v. Watson. 23 / 486. Revivor of life insurance policy by bill in equity.— 
Heinlein v. Imperial L. Ins. Co., 101 / 250. 


WAGER POLICY: The chief reason for looking to ownership is to prevent 
wager policies.—Castner v. F. Mut. F. Ins. Co., 46/18. A life insurance policy 
for the benefit of one who is neither an heir nor a relation of the insured and 
whose interest is not promoted by the latter’s continuing alive, is in the nature 
of a wager policy and is void as against public policy.—Mut. Ben. Ass’n v. 
Hoyt, 46 / 473. A wager policy is a policy upon a risk in which the insured has 
no interest and is void.—O’Hara v. Carpenter, 23/416-7. Insurance upon a life 
in which the beneficiary has not an insurable interest is a wager and is void.—• 
Smith v. Pinch, 80 / 332. See Heinlein v. Insurance Co.. 101 / 250. 

PREMIUMS: Where an agent advances the money for the premium to the 
company and takes the note of the insured, the company cannot dispute its 
liability on the ground that the premium has not been actually paid.—Home 
Ins. Co. v. Curtis, 32 / 402; Ag’l Ins. Co. v. Montague, 38 / 548. If a company 
takes a note when a premium falls due and issues renewal receipts therefor, the 
policy continues in force and the company cannot afterward insist upon the 
forfeiture as for non-payment.—Mich. Mut. Life Ins. Co. v. Bowes, 42/19; Tabor 
v. Mich. Mut. I/. Ins. Co., 44 / 324. Risk is essential to the right to recover 
premiums.—Ain. Ins. Co. v. Stoy, 41 / 385. 

PREMIUM NOTES: No recovery can be had on an installment premium note 




118 


STATE OF MICHIGAN. 


payable in advance, where it is provided in the policy that in case of 

pay an installment when due, the policy shall be void until such payment is 

made.—Yost v. Am. Ins. Co., 39 / 531. . 

UNEARNED PREMIUM: Must be returned if policy is canceled.— Home jns. 
Co. v. Curtis, 32 / 402; Am. Ins. Co. v. Stoy, 41 / 385. But in case 
an absolute insurance for a term of years, the company need 
thing as unearned premium.—Am. Ins. Co. v. Stoy, 41 / 385. 

INSURANCE AGENT: How far his statements, representations 
to the applicant bind the company.—Aetna, etc., Co. v. 

Westchester F. Ins. Co. v. Earle, 33 / 143. How the company is affected by its 
agent’s knowledge.—Peoria M. & F. Ins. Co. v. Hall, 12 / 202, N ag • 

Co. v. DeGraff, 12/124; Aetna, etc., Co. v. Olmstead, 21 / 246 , N. A 
Co. v. Throop, 22 / 146; Security Ins. Co. v. Fay, 22 / 467; VanBuren 
Joseph, etc., Co., 28 / 398; Sun Ins. Co. v. Earle, 22 / 406; Mich 
Lewis, 30 / 41; Westchester Ins. Co. v. Earle, 33 / 143. 
the office of an insurance agent as to matters affecting 


of loss under 
not return any- 

and advice 
01 instead, 21 / 246; 
ed by 

Ins. 
Ins. 
v. St. 
St. Ins. Co. v. 
Notice to a clerk in 
a risk, is notice to the 


of the knowledge of 
Mas. Mut. A. Ass’n, 


agent.—Pollock v. German Fire Ins. Co., 127 / 460. Effect 
the secretary of a mutual association.—Daily v. Preferred . 

102 / 289. Effect of a medical examiner’s writing out answers upon his own 
knowledge rather than from the applicant’s answers— Pudritzsky v. Knights 
Honor, 76 / 428. How far agent represents the insurers.—Aetna, etc., 
OJmstead, 21 / 246. See Westchester Ins. Co. v. Earle, 33 / 143; 

Germania F. Ins. Co., 54 / 145; Miller v. Insurance Co., 101/49. 


of 

v. 

v. 

he 


not the 
contract 
v. U. S. 
ness of 


Co. 
McGraw 
So far as 

acts as an insurance broker he is agent for the insured and not for the insurer. 
Hartford F. Ins. Co. v. Reynolds, 36 / 502. The local agent of an accident in¬ 
surance company, to whom a policy is sent to be delivered to the applicant, is 
agent of the insured in receiving the policy, so as to effect a valid 
of insurance inconsistent with the terms of the application.—Robinson 
Benevolent Society, 132 / 695. A person aiding in transacting the busi- 

a foreign insurance company deemed to be its agent.—Pollock v. Ger¬ 

man Fire Ins. Co., 127 / 460; Bliss v. Potomac Fire Ins. Co., 134/212. Powers 
of general agents of insurance companies.—Gore v. Canada Life Ass. Co., 119/136. 
Authority of fire insurance agent to cancel policy.—Kooistra v. Rockford Ins. 

Co., 122 / 626. When the solicitor of life insurance incurs no personal liability 
for the return of premium collected.—Bleau v. Wright, 110/183. An agent’s 
unauthorized acts are not binding upon the company.—Security Ins. Co. v. 
Fay, 22 / 467. See Reynolds v. Cont. Life Ins. Co., 36/131; Hartford F. Ins. 

Co. v. Reynolds, 36 / 502; Mallory v. Met. L. Ins. Co., 97/416. The fact of a 
person’s being a company’s local insurance agent implies nothing more than 
authority to insure in the mode allowed by the company’s charter, and to take 
such risks as the policies of the company in common use by its agents warrant.— 
Reynolds v. Cont. Ins. Co., 36 / 143-4. A sub-agent, employed by the agent of an 
insurance company to solicit applications for insurance, collect premiums and 
deliver policies, has no general authority, by virtue of such employment, to give 
credit or receive anything but cash in payment.—Cont. L. S. Ins. Co. v. Willets, 
24 / 268. One who has power to solicit insurance, receive applications, fix prem¬ 
iums and accept risks, issue, countersign and renew policies of insurance, is 
such a general agent that his knowledge of facts concerning membership of an 
insured firm will be imputed to his employer or principal.—Jacobs v. Queen Ins. 
Co., 183/512. When knowledge of agent of false statements in application re¬ 
garded as knowledge of the company.—Blake v. Ins. Co., 194 / 589. 

INSURANCE FOR MORTGAGEE: A person who purchases property with full 
knowledge that it is mortgaged and is to be kept insured for the benefit of the 
mortgagee, as additional security, is bound by such arrangement.—Miller v. 
Aldrich, 31 / 408. Insurance by the mortgagee when the mortgagor fails to 

insure as agreed.—Hopkins Mfg. Co. v. Insurance Co., 48 / 148. When the 
policy vests the right of action in the owner, whatever invalidates the policy 
as to him must of necessity defeat any right of the mortgagee derived through 
him.—Van Buren v. St. Joseph, etc., Ins. Co., 28 / 398 . Policy purporting to be 
taken for the use and benefit of another.—See Clay F. & M. Ins. Co. v. Huron 
Salt & Lumber Co., 31 / 346. He who can enforce the whole of it must sue on 
the policy; there can be no splitting of causes of action, so as to permit a 

mortgagee to maintain an action for the loss upon part of the property, made 
payable to him.—Hart. F. Ins. Co. v. Davenport, 37 / 609. An administrator 

can sue on an insurance policy for the use and benefit of a mortgagee to whom 

the loss is made payable.—Westchester Fire Ins. Co. v. Dodge, 44 / 420. A 
debtor may insure his property for the 
consents to the arrangement.—Guiterman 
LOSS: A policy of insurance against 
necessarily follows from the fire, to the 

that injury arises directly and immediately from the peri] or necessarily from 
incidental and surrounding circumstances, the operation and influence of which 
could not be avoided.—Brady v. N. W. Ins. Co., 11 / 445. Insurance covering 
“damage by fire” extends to loss occasioned by water used in case of fire to 
prevent the destruction of the insured property.-—John Davis & Co. v. Insurance 
Co., 115 / 382. Liability of fire insurance company for explosion and falling 
walls.—John Davis & Co. v. Insurance Co., 115 / 382. Insurance in case of fall¬ 
ing building.—-N. & M. Friedman Co. v. Atlas Assurance Co., 133/212. Notice 
of loss may be given to the local agent of the' company by any one of the parties 
interested in the insurance and it will enure to the benefit of the others. The 
notice is distinct from the proof of loss and need not be in writing.—Watertown 
Ins. Co. v. G. & B. Sew. Mach. Co., 41 / 136. False statements in proofs of loss.— 
Hanover F. Ins. Co., v. Mannasson, 20/316. Immaterial misstatement in the 
proof of loss.—Wicking v. City Mut. F. Ins. Co., 118 / 640. The burden of show¬ 
ing that the loss w r as occasioned by the peril insured against is upon the plaintiff. 
—John Davis & Co. v. Insurance Co., 115 / 382. If proofs are made within a 


benefit of his creditor if the insured 
v. German-American Ins. Co., Ill / 626. 
loss by fire includes every loss which 
amount of the actual injury, whenever 




LAWS RELATING TO INSURANCE. 


119 


^*' e c J aim cannot be defeated by the company’s withholding 

r r dec sion until the tune for bringing suit lias elapsed.—Westchester F. Ins. 

b®* ,'ii.Jioi .1 h mi c^m for loss does not mature until the company 

has decided whether it will rebuild, where the right to do so is reserved.—West- 

chestei Ins. Co. v. Dodge, 44 / 420. Averaging loss and contribution, in case of 
>n s « rance , on t he property.—Liverpool, etc.. Ins. Co. v. Verdier, 33 / 138; 

I.' 1 ' ^f! n ’ h ls ‘ v : Little, 39/51. Failure to furnish proofs of loss within 
()0 days will not prevent recovery in a suit commenced within 12 months and 
aftei pi oofs are furnished.—Rynalski v. Ins. Co. of Pennsylvania, 96 / 395, citing 
Steele v. Insurance Co., 93 / 81. After proofs, the company should, within a 
icMsonable time, manifest its disagreement with the amount claimed.—Brock v. 
insurance Co., 102 / 538. Where a fire insurance policy provides that no suit or 
action thereon for the recovery of any claim shall be sustainable, unless commenced 
within l_ months next after the fire, a suit cannot be maintained, unless it is in 
tact commenced within the year specified in the policy—Peck v. Germ. F. Ins. 

IJl 2 ./ 5 . 8 ’ Lentz v. Teutonia F. Ins. Co., 96 / 445; Law- v. N. E. Mut. Ac. Ass’n, 
94 / 266, Steele v. Germ. Ins. Co., 93/81. Premature action on insurance claim.— 
1 utze v. Mut. Fire Ins. Co., 132 / 670. Equity jurisdiction in controversies over 
the ownership of insurance money.—Convis v. Mutual Fire Ins. Co., 127/616. 
Proofs of loss.—Fuhrman v. Sun Insurance Office of London, 180 / 439. Wilful 
misstatements as to loss.—Silverstone v. Assurance Corp., 187 / 333. The price 
at which the owner sold a hotel later destroyed by fire, is competent evidence, 
hut not conclusive as to the cost of the building.—‘Fite v. North River Ins. Co., 
19J> / 467. 

PLEADINGS: Setting forth application in declaration, when necessary.—Throop 
v. N. A. F. Ins. Co., 19 / 423. Variance in allegation of place wdiere contract 
was made.—Clay, etc.. Ins. Co. v. Huron, etc., Mfg. Co., 31 / 346. Notice of 
defense—Home Ins. Co. v. Curtis, 32 / 402; Residence F. Ins. Co. v. Hannawadd, 
37 / 103; Farmers’ Mut. F. Ins. Co. v. Crampton, 43 / 421. See Farmers’ Mut. 
r. Ins. Co. v. Gargett, 42 / 289. An insurance company cannot avail itself, in 
an action on a policy, of a stipulation therein, which w-as intended to avoid its 
promise by way of defeasance or excuse, unless it has given notice of such 
defense.—Cronin v. Fire Association, 112 / 106. 

ARBITRATION: Arbitration of amount of loss by agreement of parties.— 
Kersey v. Phoenix Ins. Co., 135/10. The authority of arbitrators is limited to 
an adjustment of the loss and questions of fraud do not come before them.— 
Kearney v. Mut. Fire Ins. Co., 126 / 246. Practice in suit in equity to set aside 
arbitrators’ award under fire insurance policy.—Michels v. Underwriters’ Ass’n, 
129/ 417. Compromise settlements are favored by the courts and will not be 
set aside except on satisfactory evidence of mistake, fraud or unconscionable 
advantage.—Loud v. Federal Ins. Co., 195 / 60. 

. MARINE INSURANCE: Condition of vessel an essential element in marine 
insurance.—Gauntlett v. Sea Ins. Co., 127 / 504. A contract of marine insurance 
cannot be pflfeeted. or negotiated, after the loss of the property to be insured, if 
known to the owner.—Id. 

AUTOMOBILE INSURANCE:. Since the policy of the state is to separate prop¬ 
erty insurance from other lines, a foreign corporation having exceeded the 
authority conferred by Act 15 of 1911, amending Act 136 of 1869, (superseded) 
is not entitled to insure automobiles in connection with personal liability in¬ 
surance and indemnity against accident and including an agreement to defend 
suits, pay costs, etc.—Am. Automobile Ins. Co. v. Commissioner of Insurance, 174 
/ 295. The rule of comity does not avail.—Id. Provisions in an automobile acci- 
dent policy, stipulating for the defense of the owner of the car on account of acci- 
dents did not relate to a prosecution for manslaughter arising out) of the negligent 
operation of the car.—Patterson v. Standard Accident Ins. Co., 178 / 288. 


(227) Sec. 2. The capital stock of any stock company capital stock, 
organized under this chapter shall not be less than one hun- amount ’ etc - 
dred thousand dollars, in shares of not less than twenty- 
five dollars or more than one hundred dollars each, which 
capital stock may be increased by a vote of two-thirds of the How in¬ 
stockholders to not more than two million dollars; nor shall creased * 
any company thereafter organized on the plan of mutual in¬ 
surance, commence business in this state until agreements 
have been entered into for insurance with at least two hun¬ 
dred applicants, the premiums upon which shall amount to 
not less than twenty-five thousand dollars, of which at least 
five thousand dollars shall have been paid in actual cash, and 
for the remainder of which notes of solvent parties, founded 
upon actual and bona fide application for insurance, shall 
have been received. No one of the notes received, as afore¬ 
said, shall amount to more than five hundred dollars; and 
no two thereof shall be given for the same risk, nor made 
by the same person or firm, except where the ivhole amount 



120 


STATE OF MICHIGAN. 


Notes, when 
payable. 


Risk, etc., 
limit of. 


Proviso. 


Dividends 
payable on 
surplus 
profits. 


Proviso, divi¬ 
dends on 
capital stock. 


of such notes does not exceed the sum of five hundred dollars; 
nor shall any note be regarded or represented as capital 
stock, unless a policy to be issued upon the same within thirty 
days after the organization of the company taking the same, 
upon a risk which shall be for no shorter period than twelve 
months. Each of said notes shall be payable, in whole or in 
part, at any time when the directors shall deem the same 
requisite for the payment of losses by fire, and such inci¬ 
dental expenses as may be necessary for transacting the 
business of said company; and no note shall be accepted as 
part of such capital stock, unless the same shall be accom¬ 
panied by a certificate of the clerk of the circuit court of the 
county in which the person executing such note shall reside, 
that the person making the same is, in his opinion, pecuni¬ 
arily good and responsible for the same in property not 
exempt from execution by the laws of this state; and no such 
note shall be surrendered while the policy for which it was 
given continues in force. No fire insurance company organ¬ 
ized under this chapter or transacting business in this state, 
shall expose itself to any loss on any one fire or inland navi¬ 
gation risk or hazard, to an amount exceeding ten per¬ 
cent of its paid-up capital and surplus, nor shall any fire 
insurance, company organized under the laws, or by authority 
of any foreign government, expose itself to any loss on any 
one fire or inland navigation risk, or hazard, to an amount 
exceeding ten per cent of its deposited capital and surplus 
in the United States: Provided, however, That no portion 
of any such risk or hazard which shall have been re-insured 
in a corporation licensed to do fire insurance business in this 
state, shall be included in determining the limitation of risk 
prescribed in this section. 

Am. 1921, Act 102. 

See section 409 imposing fee of one mill on each dollar of increase of capital 
stock. 

(228) Sec. 3. It shall not be lawful for the directors, 
trustees, or managers of any fire insurance company to make 
a ny dividend, except from the surplus profits arising from 
their-business; and in estimating such profits, there shall be 
reserved therefrom a sum equal to the whole amount of 
premiums on unexpired risks and policies, which are hereby 
declared to be unearned premiums; and also there shall be 
reserved all sums due the corporation on bonds and mort¬ 
gages, bonds, stocks, and book accounts, of which no part of 
the principal or the interest thereon has been paid during the 
last year, and for which foreclosures or suit has not been 
commenced for collection, or which, after judgment obtained 
thereon, shall have remained more than two years unsatisfied, 
and on which interest shall not have been paid, and also there 
shall be reserved all interest due or accrued and remaining 
unpaid: Provided always, That any company may declare 
dividends not exceeding ten per cent, on its capital stock, 
in any one year, that shall have accumulated and be in posses¬ 
sion of a fund, in addition to the amount of its capital stock, 



LAWS RELATING TO INSURANCE. 


121 


and of such dividend, and all outstanding liabilities, equal to 
one-lialf of the amount of all premiums on risks not termi¬ 
nated at the time of making such dividend. Any dividend Forfeiture of 
made contrary to these provisions, shall subject the company rights ‘ 
making the same to a forfeiture of its corporate rights, and 
each stockholder receiving it to a liability to the creditors of 
such company to the extent of the dividend received, in addi¬ 
tion to the other penalties and punishments in such case 
made and provided. 

(229) Sec. 4. All notes deposited with any mutual in- Notes as 
sura nee company at the time of its organization, as provided security, 
in section two of this chapter, shall remain as security for 
«ill losses and claims until the accumulation of the profits, 
invested as required by this act, shall equal the amount of 
cash capital required to be possessed by stock companies 
organized under this chapter but any note which may have 
been deposited with any mutual insurance company subse¬ 
quent to its organization, in addition to the cash premium 
on any insurance effected with such company may at the 
expiration of the time of such insurance, be relinquished and 
given up to the maker thereof, or his representative, upon his 
paying his proportion of all losses and expenses which may 
have accrued thereon during such term; and all such premium to be lien, 
notes shall be a lien upon the premises insured to the amount 
of principal and interest due thereon. The directors or 
trustees of any such company shall have the right to deter¬ 
mine the amount of the note to be given in addition to the 
cash premium by any person insured in such company; but 
in no case shall the note be more than five times the whole 
amount of the cash premium. And every person effecting insured to be 
insurance in any mutual company, and also their heirs, cirpo b mtion. 
executors, administrators and assigns, continuing to be so 
insured, shall thereby become members of said corporation 
during the period of insurance, and shall be bound to pay Liability, 
for losses and such necessary expenses as aforesaid, accruing 
in and to said company, in proportion to the amount of his 
deposit note or notes. The directors shall, after receiving Adjustment 
notice of any loss or damage by fire sustained by any member, of loss - 
and ascertaining the same, or after the rendition of any 
judgment against said company for loss or damage, settle 
and determine the sums to be paid by the several members 
thereof, as their respective portion of such loss, and publish 
the same in such manner as they shall see fit, or as the by-laws 
shall have prescribed; and the sum to be paid by each member Proportion to 
shall always be in proportion to the original amount of his pay * 
deposit note or notes, and shall be paid to the officers of the 
company within thirty days next after the publication of 
said notice. And if any member shall, for the space of thirty Refusal or 
days after the publication of said notice, and after personal neglect> 
demand for payment shall have been made, neglect or refuse 
to pay the sum assessed upon him as his proportion of any 
loss, as aforesaid, in such case the directors may sue for and Recovery, 
recover the whole amount of his deposit note or notes, with 



122 


STATE OF MICHIGAN. 


Notes in¬ 
sufficient to 
cover. 


Liability of 
trustees, etc. 


May increase, 
etc., capital 
stock. 


Petition. 


Approval. 


When 

effective. 


Par value 
of shares. 


costs of suit, but execution shall only issue for assessments 
and costs as they accrue and every such execution shall be ac¬ 
companied by a list of the losses for which the assessment is 
made. If the whole amount of deposit notes shall be insuffi¬ 
cient to pay the loss occasioned by any fire or fires, in such 
case the sufferers insured by the said company shall receive, 
towards making good their respective losses, a proportional 
share of the whole amount of said notes, according to the 
sums by them respectively insured; but no member shall ever 
be required to pay for any loss occasioned by fire, more than 
the whole amount of his deposit note. 

(230) Sec. 5. The trustees and corporators of any com¬ 
pany organized under this chapter, shall be jointly and 
severally liable for all debts or responsibilities of such com¬ 
pany, until the whole amount of the capital of such company 
shall have been paid in and a certificate thereof recorded, as 
hereinbefore provided. Notes taken in advance of premiums 
under this chapter are not to be considered debts of the 
company in determining whether a company is • insolvent, 
but are to be regarded as assets of the company. 

(231) Sec. 6. Any stock company incorporated under 
the laws of this state and transacting business under the pro¬ 
visions of this chapter may increase or decrease its capital 
stock in the manner herein provided. When any such com¬ 
pany proposes to increase or decrease its capital stock, it 
shall first present its petition to the commissioner of insur¬ 
ance, setting forth the reasons for such increase or decrease. 
Said commissioner, if satisfied that the proposed increase or 
decrease is for the best interests of the company and its policy 
holders, and that no reasonable objection exists thereto, may 
authorize and approve the proposed plan of increase or 
decrease, or may direct such modification thereof as may 
seem proper. After the approval of the petition as aforesaid, 
such increase or decrease must be approved, and the articles 
of association amended in this respect, by the affirmative 
vote of not less than two thirds of the capital stock of the 
company, voting in person or by proxy, at a regular or special 
meeting of the stockholders, but notice of such meeting, recit¬ 
ing the purposes thereof, shall be served on each of the stock¬ 
holders, either personally or by directing same through the 
postoffice to the last known postoffice address of such stock¬ 
holder at least three weeks previous to such meeting. Such 
increase or decrease shall not become effective until finally 
approved by the commissioner of insurance, and until com¬ 
pliance is made with the requirements of section seven, 
chapter one, part two, of this act. Whenever any company 
shall increase or decrease its capital stock as herein provided, 
the par value of its shares shall be fixed at not less than 
twenty-five dollars nor more than one hundred dollars each, 
and the directors of the company shall have authority to make 
provision for calling in the old and issuing new certificates of 
stock. 

Am. 1919, Act 300; 1921, Act 102. 

Section seven above referred to is compiler’s section 52. 



LAWS RELATING TO INSURANCE. 


123 


(232) Sec. 7. Any company organized under this chap- Reinsurance, 
ter shall have power to effect reinsurance of any risks taken 

by them respectively. 

REINSURANCE DEFINED: Reinsurance means either the substitution of a 
new insurer with the consent of the policy holder, releasing the original insurer, 
or the indemnification by one company of another on account of risks which the 
indemnified concern continues to carry.—People v. American Central Ins. Co., 

179 / 371. 

(233) Sec. 8. No company formed under this chapter unlawful to 
shall, directly or indirectly, deal or trade in buying or sell- j£}J d ® r | t e c n 
ing any goods, wares, merchandise or other commodities " 
whatever, excepting such articles as may have been insured 

by such company, and are claimed to be damaged by fire or 
water. 


Sub-Division Two. 

(234) Sec. 9. It is hereby made the duty of the commis- Reinsurance 
sioner of insurance to calculate the reinsurance reserve for reserve, 
every fire and fire marine insurance company organized under 
the laws of this state or doing business therein, by taking 
fifty per cent of the premiums received on all unexpired 
risks that have less than one year to run, and a pro rata of 
all premiums received on risks that have more than one year 
to run: Provided, That when the reinsurance reserve, calcu- proviso, 
lated as above, is less than forty per cent of all premiums 
received during the year, the reinsurance reserve in such case 
shall be the whole of the premiums received on all unexpired 
risks: Provided further, That in the case of perpetual risks Further 
or policies, the whole amount of the deposit or premium paid prov,s0 - 
by the assured shall be deducted: And provided further, Further 
That no installment, part-paid, or other notes shall be ac- provlso ' 
cepted or allowed as assets in calculating the reinsurance 
reserve of any fire insurance company organized or doing 
business upon the stock plan; and in marine and inland trip 
risk insurance he shall charge all the premiums received on 
unexpired risks; on all unexpired time risks having not 
more than one year to run he shall charge not less than fifty 
per cent of the premiums received, and pro rata of all pre¬ 
miums received on time risks having more than one year to 
run. 

Sub-Division Three. 


(235) Sec. 10. No person, association or corporation Reinsurance 
transacting fire or marine insurance business m this state ize<l company, 
shall, directly or indirectly, contract for or effect reinsurance 
of any risks, in any company, corporation or association not 
licensed by the commissioner of insurance of this state to 
transact fire or marine insurance business therein. A sworn Sworn state- 
statement of all reinsurance made or effected by any fire or "iiaiiy? 11 
marine insurance company doing business in this state shall 
be made annually, containing the amount of such reinsurance, 
and the names of the companies and respective amounts 
reinsured in each company in which reinsurance has been 



124 


STATE OF MICHIGAN. 


Where filed, 
etc. 


Proviso, 

agents. 


To use cor¬ 
porate name. 
Conducting 
business on 
policies. 


False adver¬ 
tisements, 
etc. 


Departments 
and general 
agents of 
companies. 


Proviso. 


Penalty. 


Fire insur¬ 
ance com¬ 
pany, annual 
examina¬ 
tion of. 


contracted for or effected, to the commissioner of insurance 
of this state; which statement shall be filed by the insurance 
commissioner in his office, and shall be open to the inspection 
of every officer or agent of any insurance company authorized 
to do business in this state: Provided also, That nothing in 
this section shall be construed as preventing any insurance 
company through its resident agent upon property within the 
state, from reinsuring sai|l risk, or any portion thereof in 
any authorized company without having said policy of reinsur¬ 
ance signed by a local agent in the state. 

(236) Sec. 11. Every fire insurance company shall con¬ 
duct its business in this state, in the name under which it is 
incorporated, and the policies issued by it shall be headed 
or entitled only by such name. There shall not appear on 
the face of the policy, or on its filing back, anything that 
would indicate that it is the obligation of any other than 
the company responsible for the payment of losses under 
the policy, though it will be permissible to stamp or print 
on the bottom of the filing back the name or names of the 
department or general agency issuing the same. No insur¬ 
ance company or department or general agency of an insur¬ 
ance company, doing business in this state, or its officers or 
agents, shall issue any false or misleading advertisement 
through newspapers or other periodicals, or any false or mis¬ 
leading representations by signs, cards, letterheads, or other 
stationery, tending to conceal or misrepresent the true ident¬ 
ity of the issuer or insurance company which is carrying the 
liability under any policy issued in this state. Nor shall any 
insurance company or department or general agency of an 
insurance company, doing business in this state, issue any 
advertisement or representation of any character, giving the 
appearance of a separate or independent insuring organiza¬ 
tion on the part of any department or general agency, and the 
type or lettering used in any advertisement or representation 
shall set forth the name of the company or organization 
assuming the risk more conspicuously than that of any depart¬ 
ment or general agency: Provided, Nothing herein contained 
shall be construed as limiting the right of any representative 
of a fire insurance company to advertise his own individual 
business. 

(237) Sec. 12. Any violation of this subdivision shall be 
punished by a fine of not exceeding five hundred dollars, as a 
misdemeanor. 


Sub-Division Four. 

(238) Sec. 13. It shall be the duty of the commissioner 
of insurance as often as once each year, to appoint one or 
mQre competent persons, not officers of any fire insurance 
company doing business in this state, to examine into the 
affairs of any fire insurance company incorporated under 
any law of this state, and whenever lie shall deem it expedient 
so to do, to examine into the affairs of any such company 




LAWS RELATING TO INSURANCE. 


125 


incorporated or organized under the laws of any other state 
of the United States doing business by its agents in this 
state. Whenever it shall appear to the said commissioner When assets 
of insurance, from such examination, that the assets of any sufficient!" 
company incorporated under any law of this state are in¬ 
sufficient to justify the continuance in business of any such 
company, he may direct the officers thereof to require the Assessment 
stockholders to pay in the amount of such deficiency within holders 1 ? 
such period as he may designate in such requisition, and 
in case any such company shall fail to pay in and make good 
the full amount of such deficiency within thirty days after 
such requisition and direction as aforesaid, it shall be the Notice to pay 
duty of the commissioner of insurance to give notice of assessments - 
such failure in some newspaper published in the county where 
the office of such company is located by its charter; such 
notice shall contain a brief statement of the fact of such 
failure to comply with this section, and shall be published in 
such paper once in each week for three successive weeks. 

I f shall not be lawful after the first publication of such notice Business to 
for such company to issue any policy of insurance, or to make cease - 
any contract for the same, or to transact any business under 


its charter, except to close up its business: and all contracts 
of insurance and policies issued after such first publication 
of such notice shall be void and of no binding force, and the 
person or persons making such contracts or issuing such 
policy shall be liable, in an action of trover, to the person 
assured, in double the sum named as premium in such con¬ 
tract or policy. 

(239) Sec. 14. Any Company receiving the aforesaid 
requisition from the said commissioner of insurance, shall 
forthwith call upon its stockholders for such amounts as will 
make its capital equal to the amount fixed by the charter of 
said company; and in case any stockholder of such company 
shall refuse or neglect to pay the amount so called for, after 
notice personally given or by advertisement, in such time 
and manner as the said commissioner of insurance shall 
approve, it shall be lawful for the said company to require 
the return of the original certificate of stock held by such 
stockholder, and in lieu thereof to issue new certificates for 
such number of shares as the said stockholder may be entitled 
to in the proportion that the ascertained value of the funds 
of the said company may be found to bear to the original capi¬ 
tal of the said company; the value of such shares, for which 
new certificates shall be issued, to be ascertained under the 
direction of the said commissioner of insurance, and the 
company paying for the fractional parts of shares; and it 
shall be lawful for the directors of such company to create 
new stock and dispose of the same, and to issue new certifi¬ 
cates therefor, to an amount sufficient to make up the original 

capital of the company. , , ^ . X1 

(240) Sec. 15. And it is hereby declared that in the 
event of any additional losses accruing upon new risks, taken 


When con¬ 
tracts void. 


Call on stock¬ 
holders. 


Return of 
stock certifi¬ 
cate. 


Issuing new 
stock cer¬ 
tificates. 


Liability for 
loss. 



126 


STATE OF MICHIGAN. 


When assets 
insufficient, 
mutual com¬ 
panies. 


Liability of 
trustees, etc. 


Transfer of 
stock, pend¬ 
ing: investi¬ 
gation. 


Foreign com¬ 
panies. 


Revocation of 
certificate. 

Notice. 


Mutual fire 
company on 
stock plan. 
Cash assets 
required as 
capital. 


Provisions, 
etc., sub¬ 
ject to. 


after the expiration of the period limited by the said commis¬ 
sioner of insurance in the aforesaid requisition for the filling 
up of the deficiency in the capital and assets of such company, 
and before said deficiency shall have been made up, the 
directors shall be individually liable to the extent thereof. 
And if, upon such examination, it shall appear to the said 
commissioner of insurance that the assets of any company 
chartered on the plan of mutual insurance under any law of 
this state are insufficient to justify the continuance of such 
company in business, it shall be his duty to proceed in rela¬ 
tion to such company in the same manner as is herein re¬ 
quired in regard to joint stock companies; and the trustees or 
directors of such company are hereby made personally liable 
for any losses which may be sustained upon risks taken after 
the expiration of the period limited by the said commissioner 
of insurance for filling up the deficiency in the capital and 
assets of such company, and before such deficiency shall have 
been made up. Any transfer of the stock of any company, 
organized under this part, made during the pending of any 
such investigation, shall not release the party making the 
transfer from his liability for losses which may have accrued 
previous to the transfer. All the provisions of section thirteen 
of this chapter shall apply to any company chartered on the 
plan of mutual insurance under the laws of this state; and 
whenever it shall appear to the said commissioner of insur¬ 
ance that the affairs of any company not incorporated by the 
laws of this state are in an unsound condition, lie shall revoke 
the certificates granted in behalf of such company, and shall 
cause a notification thereof to be published in some paper of 
general circulation in this state for four weeks; and the agent 
or agents of such company are, after such notice, required to 
discontinue the issuing of any new policy, and the renewal 
of any previously issued; and the agent or agents of such 
company not incorporated by the laws of this state who shall 
issue any new policy, or make any contract for the same after 
such publication, shall be liable in an action of trover to the 
persons assured in double the sum named as premium in such 
policy or contract. 

(241) Sec. 16. It shall be lawful for any mutual fire 
insurance company organized under the laws of the state of 
Michigan or of any other state of the United States, and 
being possessed of at least one hundred thousand dollars of 
actual net cash assets, to transact the business of fire insur¬ 
ance in this state in like manner as stock companies of the 
state of Michigan or other states may do, upon receiving 
from the commissioner of insurance a certificate of authority. 
Such amount of one hundred thousand dollars shall be deemed 
to be actual capital of such company, and shall be treated 
as capital by the commissioner of insurance in determining 
the solvency of such company. In all other respects such 
mutual fire insurance companies shall be subject to all the 



LAWS RELATING TO INSURANCE. 


127 


penalties and provisions of law applicable to stock fire insur¬ 
ance companies of the state of Michigan and of other states 
transacting business in this state. 


CHAPTER II.—PROVISIONS RELATING TO CONTRACTS OF 
FIRE INSURANCE, ET CETERA. 

Sub-Division One. 

(242) Section 1 . All contracts of fire insurance upon Contracts, 
property real or personal located in this state shall be held 

and deemed to be made and consummated within this state. 

(243) Sec. 2. All contracts of fire insurance upon prop- unauthorized 
erty real or personal located in this state in companies not contracts 8 
at the time of the making of such contracts duly authorized void, 
under the laws of this state to make such contracts are 

hereby declared to be void and unenforcible and no action at 
law or in equity shall be maintained on any such contract in 
any court. 

It is the policy of this state to limit the business 'of insurance to such corpora¬ 
tions, domestic and foreign, as shall be authorized by the commissioner of in¬ 
surance to do business after compliance with certain regulations and conditions 
prescribed by law, and all fire insurance companies are expressly forbidden to 
transact any business of insurance within this state without the requisite author¬ 
ity.—Seamans v. The Temple Co., 105 / 400 . 

(244) Sec. 3. Any company not being duly authorized unauthorized 
under the laws of this state to insure property located herein, companies, 
which shall make or issue or cause to be made or issued any 

policy of fire insurance upon real or personal property located 
in this state, shall be liable to a penalty of not less than two penalty, 
hundred dollars nor more than one thousand dollars for each 
contract made or caused to be made by such company. 

(245) Sec. 4. Any person who as solicitor, agent or in solicitation, 
any other capacity takes or receives any application for fire authorized 1111 
insurance in any company not duly authorized under the companies, 
laws of this state, upon any real or personal property located 

in this state, or performs any service for any such unauthor¬ 
ized company, either in making a survey or examination of 
property for such company, making out or forwarding any 
application for fire insurance to such unauthorized company, 
delivering any unauthorized policy, or collecting or receiving 
the premium or any part thereof on such policy, making any 
endorsement thereon, taking any part in the settlement or 
adjustment of any loss occurring under such unauthorized 
policy, shall be deemed guilty of a misdemeanor and shall be penalty, 
subject to a fine of not to exceed two hundred dollars or 
imprisonment in the Michigan reformatory not to exceed one 
year, in the discretion of the court. 

(246) Sec. 5. The word “company” as used in this chap- company 
ter shall be held to mean and include a corporation, either defined, 
mutual or stock, association, joint stock company, organiza¬ 
tion of Lloyds and underwriters, and any person or group 



128 


STATE OF MICHIGAN. 


Standard 

insurance 

policy. 


Form. 


of persons either jointly or collectively writing or making 
fire insurance upon real or personal property located in this 
state. 


Sub-Division Two.—Standard Fir© Policy. 

fire (247) Sec. 6 . On and after January one, nineteen hun¬ 
dred eighteen, the following form of standard fire insurance 
policy shall be substituted for the “Michigan Standard 
Policy” prescribed by act two hundred seventy-seven, public 
acts of nineteen hundred five, and other acts amendatory 
thereof and supplemental thereto: 

FORM. 


No. 

( Space for insertion of name of company or companies issu¬ 
ing the policy and other matter permitted to be stated at 
the head of the policy.) 

Amount $. Rate . Premium $. 

IN CONSIDERATION OF THE STIPULATIONS HERE¬ 
IN NAMED AND OF . Dollars premium 

does insure . 


and legal representatives, to the extent of the actual cash 
value (ascertained with proper deductions for depreciation) 
of the property at the time of loss or damage, but not exceed¬ 
ing the amount which it would cost to repair or replace the 
same with material of like kind and quality within a reason¬ 
able time after such loss or damage, without allowance for 
any increased cost of repair or reconstruction by reason of 
any ordinance or law regulating construction or repair and 
without compensation for loss resulting from interruption 
of business or manufacture, for the term of.from 


the.day of.19.. . at noon to 

the . day of . 19... at noon 


against ail DIRECT LOSS AND DAMAGE BY FIRE and 
by removal from premises endangered by fire, except as 

herein provided, to an amount not exceeding. 

dollars, to the following described property while located 
and contained as described herein, or pro rata for five days 
at each proper place to which any of the property shall 
necessarily be removed for preservation from fire, but not 
elsewhere, to-wit: 

(Space for description of property.) 

This policy is made and accepted subject to the foregoing 
stipulations and conditions, and to the stipulations and con¬ 
ditions printed on the back hereof, which are hereby made a 
part of this policy, together with such other provisions, stip¬ 
ulations and conditions as may be endorsed hereon or added 
hereto as herein provided. 
















LAWS RELATING TO INSURANCE. 


129 


IN WITNESS WHEREOF, This company has executed 
and attested these presents. 

(Space for date and for signatures and titles of officers and 

agents.) 

This entire policy shall be void if the in- 
Fraud, misrepre- sured has concealed or misrepresented any 
sentation, etc. material fact or circumstance concerning 
this insurance or the subject thereof; or in 
case of any fraud or false swearing by the insured touching 
any matter relating to this insurance or the subject thereof, 
whether before or after a loss. 

This policy shall not cover accounts, bills, 
currency, deeds, evidences of debt, money, 
notes or securities; nor, unless specifically 
named hereon in writing bullion, manu¬ 
scripts, mechanical drawings, dies or pat¬ 
terns. 

This Company shall not be liable for loss 
or damage caused directly or indirectly by 
invasion, insurrection, riot, civil war or 
commotion, or military or usurped power, 
or by order of any civil authority; or by theft; or by neglect 
of the insured to use all reasonable means to save and pre¬ 
serve the property at and after a fire or when the property 
is endangered by fire in neighboring premises. 

This entire policy shall be void, unless otherwise provided 
by agreement in writing added hereto 

(a) if the interest of the insured be other 
Ownership, etc. than unconditional and sole ownership; or 

(b) if the subject of insurance be a build¬ 
ing on ground not owned by the insured in fee simple; or 

(c) if, with the knowledge of the insured, foreclosure pro¬ 
ceedings be commenced or notice given of sale of any prop¬ 
erty insured hereunder by reason of any mortgage or trust 
deed; or (d) if any change, other than by the death of an 
insured, take place in the interest, title or possession of the 
subject of insurance (except change of occupants without 
increase of hazard); or (e) if this policy be assigned before 
a loss. 


Uninsurable 

and 

excepted prop¬ 
erty. 


Hazards not 
covered. 


Unless otherwise provided by agreement in writing added 
hereto this Company shall not be liable for loss or damage 
occurring 


(a) while the insured shall have any other 
Other insurance, contract of insurance, unbeknown to this 
company or its agent, on property covered 
by this policy or; 

Increase of (b) while the hazard is increased by any 

hazard. means within the control or knowledge of 

the insured; or 





130 


STATE OF MICHIGAN. 


(c) while mechanics are employed in build- 
Repairs, etc. ing, altering or repairing the described 

premises beyond a period of fifteen days; or 

(d) while illuminating gas or vapor is gen- 

Explosives, erated on the described premises; or while 

gas, etc. (any usage or custom to the contrary not¬ 

withstanding) there is kept, used or allowed 

on the described premises fire-works, greek fire, phosphorus, 
explosives, benzine, gasoline, naphtha or any other petroleum 
product of greater inflammability than kerosene oil, gun¬ 
powder, exceeding twenty-five pounds, or kerosene oil ex¬ 
ceeding five barrels; or 

(e) if the subject of insurance be a manu- 

Factories. facturing establishment while operated in 

whole or in part between the hours of ten 
p. m. and five a. m., or while it ceases to be operated beyond 
a period of ten days; or 

(f) while a described building, whether in¬ 
tended for occupancy by owner or tenant, 
is vacant or unoccupied beyond a period of 
ten days; or 

(g) by explosion or lightning unless fire 
ensue, and, in that event, for loss or dam¬ 
age by fire only. 

Unless otherwise provided by agreement in 
writing added hereto this company shall 
not be liable for loss or damage to any 
property insured hereunder while incum¬ 
bered by a chattel mortgage, and during the time of such 
incumbrance this Company shall be liable only for loss or 
damage to any other property insured hereunder. 

If a building, or any material part thereof, 
Fall of building, fall except as the result of fire, all insur¬ 
ance by this policy on such building or its 
contents shall immediately cease. 

The extent of the application of insurance 
Added clauses. under this policy and of the contribution 
to be made by this Company in case of loss 
or damage, and any other agreement not inconsistent with 
or a waiver of any of the conditions or provisions of this 
policy, may be provided for by agreement in writing added 
hereto. 

No one shall have power to waive any pro- 
Waiver. vision or condition of this policy except 

such as by the terms of this policy may be 
the subject of agreement added hereto, nor shall any such 
provision or condition be held to be waived unless such 
waiver shall be in writing added hereto, nor shall any pro¬ 
vision or condition of this policy or any forfeiture be held 
to be waived by any requirement, act or proceeding on the 
part of this Company relating to appraisal or to any ex¬ 
amination herein provided for; nor shall any privilege or 
permission affecting the insurance hereunder exist or be 


Unoccupancy. 


Explosion, 

lightning. 


Chattel 

mortgage. 



LAWS RELATING TO INSURANCE. 


131 


claimed by the insured unless granted herein or by rider 
added hereto. 

This policy shall be cancelled at any time 
Cancellation at the request of the insured, in which case 
of policy. the Company shall, upon demand and sur¬ 

render of this policy, refund the excess of 
paid premium above the customary short rates for the ex¬ 
pired time. This policy may be cancelled at any time by the 
Company by giving to the insured a five days’ written notice 
of cancellation with or without tender of the excess of paid 
premium above the pro rata premium for the expired time, 
which excess, if not tendered, shall be refunded on demand. 
Notice of cancellation shall state that said excess premium 
(if not tendered) will be refunded on demand. 

This Company shall not be liable for a 
Pro rata liability, greater proportion of any loss or damage 
than the amount hereby insured shall bear 
to the whole insurance covering the property, whether valid 
or not and whether collectible or not. 

The word “noon” herein means noon of 
standard time at the place of loss or dam- 
age. 

If loss or damage is made payable, in whole 
or in part, to a mortgagee not named herein 
as the insured, this policy may be cancelled 
as to such interest by giving to such mort¬ 
gagee a ten days’ written notice of cancellation. Upon fail¬ 
ure of the insured to render proof of loss such mortgagee 
shall, as if named as insured hereunder, but within sixty 
days after notice of such failure, render proof of loss and 
shall be subject to the provisions hereof as to appraisal and 
times of payment and of bringing suit. On payment to such 
mortgagee of any sum for loss or damage hereunder, if this 
company shall claim that as to the mortgagor or owner, no 
liability existed, it shall, to the extent of such payment be 
subrogated to the mortgagee’s right of recovery and claim 
upon the collateral to the mortgage debt, but without im¬ 
pairing the mortgagee’s right to sue; or it may pay the 
mortgage debt and require an assignment thereof and of the 
mortgage. Other provisions relating to the interests and 
obligations of such mortgagee may be added hereto by agree¬ 
ment in writing. 

The insured shall give immediate notice, in 
Requirements in writing, to this Company, of any loss or 
case of loss. damage, protect the property from further 
damage, forthwith separate the damaged 
and undamaged personal property, put it in the best possi¬ 
ble order, make a complete inventory of the damaged and 
undamaged property, stating the quantity and cost of each 
article and the amount claimed thereon; and, the insured 
shall, within sixty days after the fire, unless such time is ex¬ 
tended in writing by this Company, render to this Company a 


Noon. 

Mortgage 

interests. 



132 


STATE OF MICHIGAN. 


♦ 


proof of loss, signed and sworn to by the insured, stating the 
knowledge and belief of the insured as to the following; the 
time and origin of the lire, the interest of the insured and 
of all others in the property, the cash value of the property 
insured under each item of the policy and the amount of loss 
or damage thereto, all incumbrances thereon, all other con¬ 
tracts of insurance, whether valid or not, covering any of 
said property, any changes in the title, use, occupation, loca¬ 
tion, possession, or exposures of said property since the 
issuing of this policy, by whom and for what purpose any 
building herein described and the several parts thereof were 
occupied at the time of lire; and shall furnish a copy of all 
the descriptions and schedules in all policies and if required, 
verified plans and specifications of any building, fixtures or 
machinery destroyed or damaged. The insured, as often as 
may be reasonably required, shall exhibit to any person desig¬ 
nated by this Company all that remains of any property 
herein described, and submit to examinations under oath by 
any person named by this Company, and subscribe the same; 
and, as often as may be reasonably required, shall produce 
for examination all books of account, bills, invoices, and 
other vouchers, or certified copies thereof, if originals be 
lost, at such reasonable time and place as rimy be designated 
by this Company or its representative, and shall permit ex¬ 
tracts and copies thereof to be made. 

In case the insured and this Company shall 
Appraisal. fail to agree as to the amount of loss or 

damage, each shall, on the written demand 
of either, select a competent and disinterested appraiser. 
The appraisers shall first select a competent and disinter¬ 
ested umpire; and failing for fifteen days to agree upon such 
umpire then, on request of the insured or this Company, 
such umpire shall be selected by a judge of a court of record 
in the state in which the property insured is located. The 
appraisers shall then appraise the loss and damage stating 
separately sound value and loss or damage to each item of 
the policy; and failing to agree, shall submit their differ¬ 
ences only, to the umpire. An award in writing, so itemized, 
of any two when filed with this Company shall determine 
the amount of sound value and loss or damage. Each ap¬ 
praiser shall be paid by the party selecting him and the ex¬ 
penses of appraisal and umpire shall be paid by the parties 
equally. 

It shall be optional with this Company to 
Company’s take all, or any part, of the articles at the 

options. agreed or appraised value, and also to re¬ 

pair, rebuild, or replace the property lost 
or damaged with other of like kind and quality within a 
reasonable time, on giving notice of its intention so to do 
within thirty days after the receipt of the proof of loss 
herein required; but 

there can be no abandonment to this Corn- 
Abandonment. pany of any property. 



LAWS RELATING TO INSURANCE. 


133 


The amount of loss or damage for which 
When loss this Company may be liable shall be pay- 

payable. able thirty days after proof of loss, as here¬ 

in provided, is received by this Company 
and ascertainment of the loss or damage is made either by 
agreement between the insured and this Company expressed 
in writing, or by the filing with this Company of an award 
ns herein provided. 

No suit or action on this policy, for the re- 
Suit. covery of any claim, shall be sustainable in 

any court of law or equity unless all the 
requirements of this policy shall have been complied with, nor 
unless commenced within twelve months next after the lia¬ 
bility shall have accrued. 

This Company may require from the in- 
Subrogation. sured an assignment of all right of re¬ 
covery against any party for loss or damage 
to the extent that payment therefor is made by this Company. 


Prior to this act, the following decisions had been made concerning the standard 
policy law: 

A conveyance or transfer that tends to increase the interest of the owner does 
not come within the provisions of a policy, requiring notice to insurer of a 
material change in the policyholder’s interest.—Foiles v. Det. F. & M. Ins. Co., 
175/716. Circumstances held to be no breach of a clause requiring notice of 
foreclosure proceedings known to insurer.—Id. Waiver or estoppel because in¬ 
sured acquainted agent of insurer with the fact of an incumbrance outstanding 
may arise under the standard policy law and amendments, although a permit 
in writing was not attached to the policy.—Dahrooge v. Sovereign Fire Assur¬ 
ance Co., 175 / 248. Plaintiff’s testimony of notification of agents of state of 
title held to tend to show waiver of clause nullifying the policy if she had 
not a fee simple title to the property.—Bryant v. Granite State Fire Ins. Co., 
174 / 102. Concurrent insurance.—Smith v. Am. Ins. Co., 177 / 123. Delegation 
of legislative power.—King v. Concordia Fire Ins. Co., 140 / 259. The policy of 
our laws relating to the contract of insurance is to place the parties thereto 
upon an equal footing with respect to the assertion and determination of rights 
under it, and to secure fairness and equity between the insurers and the assured.— 
McGraw v. Germania Fire Ins. Co., 54 / 158. Time is not made the essence of 
the provision of the standard policy relating to proofs.—Steele v. Insurance Co., 
93 / 83. The object of this statute was to provide a policy fair to the insured 
and the insurer and to avoid litigation.—Armstrong v. Insurance Co., 95 / 139. 
The provision of the standard policy requiring an appraisal is a condition pre¬ 
cedent to suit only in case a demand therefor has been made.—Nat’l Home 
B. & L. Ass’n v. Dwelling House Ins. Co., 106 / 236. This statute comes clearly 
within that class of cases which hold the word “void” to mean “voidable.” The 
insertion of a clause in the policy, not provided for by this act, renders the 
policy voidable, not void.—Armstrong v. Insurance Co., 95 / 139-40. The terms of 
the standard policy of fire insurance are to be construed as employed in the 
sense in which they were used and interpreted by the courts before that form 
of policy was adopted.—John Davis & Co. v. Insurance Co., 115 / 382. Arbitration 
under the terms of standard policy.—Wicking v. Cit. Mut. F. Ins. Co., 118 / 640. 
There is nothing in the standard fire insurance policy requiring the insured to 
obtain from an adjuster a certificate that he has suffered loss by fire and the 
amount thereof.—Burns v. Mut. Fire Ins. Co., 130 / 561. Proofs of loss, under 
the standard policy may be made by an agent, where the insured is critically 
ill and unable to attend to any business.—Burns v. Mut. Fire Ins. Co., 130 / 561. 
A standard insurance policy, issued by a mutual company, held to be an 
ordinary contract of insurance, which did not make the holders members of the 
company and liable for assessments.—Osius v. O’Dwyer, 127 / 244. Fire insurance 
companies being creatures of statute, the legislature may prescribe the forms 
of their contracts and the limitations in relation to the forfeiture clauses therein.— 
McGannon v. Fire Ins. Co., 127 / 636. Co-insurance clause.—Att’y General v. 
Com’r of Insurance, 148 / 566. See Mutual Benefit Life Ins. Co. v. Com’r of 
Insurance, 151 / 615. Under the provisions of a Michigan standard fire insur¬ 
ance policy, permitting the insurer to cancel the contract on live days’ notice, 
the pro rata part of the premium paid to be returned on surrender of the policy, 
a notice of cancellation by the insurer to insured terminates the obligation after 
the specified time, without’any tender of the unearned premium.—Webb v. Granite 
State Fire Ins. Co., 164 / 139. Voiding of policy for breach of promissory war¬ 
ranty.— Macatawa Transp. Co. v. Ins. Co., 168 / 365. Effect of breach of con¬ 
ditions in fire insurance policy as limited by Act 128, P. A. 1911. Lagden v. 
Concordia Mut. Fire Ins. Co., 188 / 689. Where moral hazard was not so in- 
creased as to avoid the policy on the ground that the insured was not sole and 
unconditional owner.—First Nat’l Bank v. Ins. Co., 188 / 251. 1 roof of fraudulent 




134 


STATE OF MICHIGAN. 


Exceptions 

from 

standard 

form. 

Face of 
policy. 


Countersig¬ 
nature by 
agents. 


Description of 
property. 


Lightning 

clause. 


Modifying 
standard 
form by rider 
or endorse¬ 
ment. 


Type to be 
used. 


Provisions 
not to apply. 


intent is necessary in order to create a forfeiture of a Michigan standard fire 
insurance policy, under the clause of a policy providing that in “case of any 
fraud or false swearing by the insured touching any matter relating to this 
insurance or the subject thereof,” the entire policy shall be void.—Barrett v. 
Conn. Fire Ins. Co., 195 / 209. Action must be brought within one year from 
date of the fire.—Dahrooge v. Rochester German Ins. Co., 177 / 442. An action 
at law upon a Michigan standard policy may not be maintained by insured 
for a loss by fire while an award by appraisers under the provisions of Part 4, 
chap. 2, section 6, Act No. 256, P. A. 1917, stands unrevoked; his remedy, if 
any, being in equity to avoid the award.—Innis v. Fireman’s Fund Insurance 
Company, 218/ 253. 

(248) Sec. 7. No fire insurance company shall issue fire 
insurance policies on property in this state other than those 
of the standard form herein set forth, except as follows: 

First, A company may print on or in its policies its name, 
location and date of incorporation, the amount of its paid 
up capital stock, the names of its officers and agents, the 
number and date of the policy, and if it is issued through an 
agent, the words, “This policy shall not be valid until coun¬ 
tersigned by the duly authorized agent of the company 
at. 

Second, A company may print or use in its policies printed 
forms of description and specifications of the property 
insured; 

Third, A company insuring against damage by lightning 
may print in the clause enumerating the perils insured 
against the additional words “also any damage by lightning, 
whether fire ensues or not,” and, in the clause providing for 
an apportionment of loss in case of other insurance, the 
words, “whether by fire, lightning or both”; 

Fourth, The blanks in said standard form may be filled in 
print or writing; 

Fifth, A company shall print upon policies issued in com¬ 
pliance with the preceding provisions of this section the 
words “Michigan Standard Policy”; 

Sixth, A company may write upon the margin or across the 
face of a policy or write or print in type not smaller 
than long primer upon separate slips or riders to be attached 
thereto, provisions adding to or modifying those contained 
in the standard form, or may attach a slip or rider provid¬ 
ing that no cancellation of the policy shall be made by the 
company at any time when the property insured is endan¬ 
gered by forest fires or other conflagrations; and all such slips, 
riders, and provisions must be signed by the officers or agent 
of the company so using them. 

Said standard form of policy shall be plainly printed and 
no portion thereof shall be in type smaller than long primer. 
The form of policy, fixed as above, shall be known and desig¬ 
nated as the Michigan standard policy. 

(249) Sec. 8. The provisions of this sub-division shall 
not apply to policies issued by mutual fire insurance com¬ 
panies organized or doing business under the provisions of 
chapter four of this part. 




LAWS RELATING TO INSURANCE. 


135 


Sub-Division Three.—Rider Clauses—Co-Insuraiice. 

(250) Sec. 9. Whenever any person, firm or corporation 
shall make written application to any insurance company 
authorized to do business within the state of Michigan, to 
attach a co-insurance clause to any existing policy or to one 
to be issued by such company, the latter shall have the right 
to issue and attach such co-insurance clause, but not other¬ 
wise. Such application shall be made substantially in the 
following form: 

. hereby request that there be attached 

to policy number.of the.insur¬ 

ance company, the following co-insurance clause, to-wit: 

“It is hereby agreed that the assured shall maintain insur¬ 
ance during the life of this policy upon the property hereby 

insured, to the extent of at least.per cent 

of the actual cash value thereof, and that failing to do so, 
the assured shall be a co-insurer to the extent of the differ¬ 
ence between the amount insured and the said. 

per cent, of the cash value, and to that extent shall bear his, 
her or their proportion of any loss. It is also agreed that 
if this policy be divided into two or more items, the fore¬ 
going conditions shall apply to each item separately 

To the provisions of which. 

agree in consideration of a reduced premium rate. 

It is understood by the undersigned that the effect of the 
above mentioned co-insurance clause, when attached, will be 
to reduce the liability of the insurance company, unless the 
property described in the policy covered by said insurance is 

insured for.per cent of its actual cash value, 

except where the loss exceeds the amount of the insurance 
required under this clause. 

Att’y General v. Com’r of Insurance, 148 / 566; Dahrooge v. Sovereign Fire 
Assurance Co., 175 / 251. 

(251) Sec. 10. All co-insurance rider clauses attached to 
any insurance policy in pursuance of the application men¬ 
tioned in the preceding section shall be in the form therein 
stated and duly signed by the company or its authorized 
agent. 

Sub-Division Four.—Average or Pro Rata Clause. 

(252) Sec. 11. Whenever any person, firm or corpora¬ 
tion shall make written application to any insurance com¬ 
pany authorized to do business within the state of Michi¬ 
gan to attach to any existing policy or to one to be issued 
by such company an average or pro rata clause, the latter 
shall have the right to issue and attach such average or pro 
rata rider clause but not otherwise. 

(253) Sec. 12. Such application shall be made substan¬ 
tially in the following form: 

..hereby request that there be attached to 


Co-insurance 

clause. 


Form of 
application. 


Clause to be 
attached to 
policy. 


Signature of 
company or 
agent. 


Average or 
pro rata 
clause. 


Form of 
application. 











136 


STATE OF MICHIGAN. 


Clause to be 
attached to 
policy. 


Provision re¬ 
quiring cer¬ 
tain amount 
of insurance, 
prohibited. 


Contrary 

provisions, 

void. 


Penalty for 

chapter 

violations. 


Revocation of 
authority. 


When policy 
not void. 


policy number.of the.insurance 

company the following pro rata‘or average clause, to-wit: 

“It is hereby agreed in case of loss, this policy shall attach 
in or on each building, division or location in such proportion 
as the values in or on such buildings, division or location 
bear to the aggregate value of the property insured.” 

To the provisions of which. 

agree in consideration of a reduced premium rate. 

(254) Sec. 13. It shall not be necessary for all average 
or pro rata rider clauses to be in the exact language used in 
section twelve of this chapter, but no such clause shall be 
attached to any policy unless the same shall be an exact 
duplicate of the clause recited in the application nor until 
the form thereof shall have been filed with and received the 
approval of the commissioner of insurance. 

Sub-Division Five. 

(255) Sec. 14. That it shall be unlawful, except as 
herein otherwise provided, for any fire insurance company 
doing business in the state of Michigan to provide by any 
insurance policy issued by it, or by any clause therein, or by 
any separate agreement, that the liability of said insurance 
company to the insured shall be limited or restricted by rea¬ 
son of the failure of the said insured to insure the property 
covered by said policy for any certain amount or proportion 
of the actual cash value of such property. 

(256) Sec. 15. Any provision of any policy, or any con¬ 
tract or agreement contrary to the provisions of this sub¬ 
division shall be absolutely void, and any insurance company 
issuing any policy of insurance containing any such pro¬ 
vision shall be liable to the insured under such policy in 
the same manner and to the same extent as if such provision 
were not therein contained. 

(257) Sec. 16. Any person, corporation, or company 
that shall, either as principal or agent, wilfully issue or cause 
to be issued, any policy or contract of fire insurance on prop¬ 
erty situated within this state, contrary to the provisions of 
this chapter, shall forfeit the sum of two hundred fifty dollars 
for each policy or contract so issued. Any company or com¬ 
panies violating the provisions of this chapter, upon notice 
and satisfactory proof thereof being made to the commis¬ 
sioner of insurance, shall have its or their authority to trans¬ 
act business in the state of Michigan revoked for a period of 
not less than ninety days, and any insurance company whose 
license to do business in Michigan may be so revoked by the 
commissioner of insurance, shall not again be permitted to do 
business in Michigan until all penalties due hereunder shall 
be paid, together with any expenses that may be due under 
the provisions of this act to the commissioner of insurance. 

(258) Sec. 17. No policy of fire insurance shall hereafter 
be declared void by the insurer for the breach of any condition 
of the policy if the insurer has not been injured by such 







LAWS RELATING TO INSURANCE. 


137 


breach, or where a loss has not occurred during such breach, 
and by reason of such breach of condition. 

Added 1921, Act 264. 


CHAPTER III.—AUTOMOBILE INSURANCE. 

Sub-Division One. 

(259) Section 1. Seven or more persons may become a who may 
corporation for the purpose of writing insurance on auto- pu% r Ss? te ’ 
mobiles covering in one policy, fire, theft, property damage, 
liability and collision insurance, together with any other 
proper form of automobile insurance which may be approved 

on application to the insurance commissioner. 

For other classifications of automobile insurance, see secs. 131, 263 and 315. 

(260) Sec. 2. The capital stock of any company organ- Capital 
ized under sub-division one of this chapter shall in no case minimum, 
be less than two hundred thousand dollars in shares of ten 
dollars or one hundred dollars each; which capital stock may 

be increased from time to time by a vote of two- thirds of the increase, 
stockholders present or represented at any regular meeting 
called for that purpose: Provided, That the commissioner of Proviso, 
insurance shall first be given notice of such proposed increase notlce ' 
and shall express approval of the same. 

Am. 1919, Act 133. 

(261) Sec. 3. A reserve fund shall be maintained by Reserve fund, 
such company amounting at all times to forty per cent of the 
premiums on all of its insurance in force, and not less than 

forty per cent of the earned premiums on all of its liability 
insurance which has terminated during the preceding five 
years, less the amount paid for losses and expenses incidental 
thereto upon claims under said liability insurance which has 
terminated during the preceding five years. And the amount 
of the reserve fund so ascertained shall be increased by such 
an amount as is necessary to provide for claims more than 
five years old and not liquidated. Whenever the capital of whe^capUai 
any company authorized under subdivision one of this chap- impane • e c * 
ter shall become impaired to the extent of fifteen per cent, 
or shall otherwise become unsafe, it shall be the duty of the 
commissioner of insurance to direct such company to take 
any measure he deems necessary to restore its capital to a 
safe and sound condition, and to cancel the authority of such 
company upon its failure to comply with his directions within 
a reasonable time. 

(262) Sec. 4. The provisions of this act applicable to the Provisions 
business of stock life insurance companies, relative to deposit app lca e ‘ 
of securities with the state treasurer shall govern and regu¬ 
late automobile insurance companies organized under this 
subdivision. 



138 


STATE OF MICHIGAN. 


Who may 

incorporate, 

purposes. 


Preliminary 

requirements 


Provision as 
to limit of 
amount re¬ 
coverable. 


Proviso. 


Assessments 
for a surplus 
fund. 


Mutual plan. 


Sub-Division Two. 

(263) Sec. 5. Mutual Automobile Insurance. Any num¬ 
ber of persons not less than fifteen may associate together 
and form an incorporated company for the purpose of writ¬ 
ing mutual insurance upon automobiles, covering in one 
policy, fire, theft, property damage, liability and collision 
insurance, together with any other proper form of automobile 
insurance which may be approved on application to the insur¬ 
ance commissioner. 

For other classifications of automobile insurance, see secs. 131, 259 and 315. 

(264) Sec. 6. No company organized under this subdivi¬ 
sion shall commence business until bona fide agreements have 
been entered into for insurance with at least five hundred in¬ 
dividuals covering insurance upon five hundred automobiles of 
a valuation of not less than three hundred thousand dollars, 
nor until such company shall have on hand and set aside for 
the payment of losses exclusively, the sum of ten thousand dol¬ 
lars. 

Am. 1923, Act 245. 

(265) Sec. 7. Any company incorporated under this sub¬ 
division shall provide in its articles of incorporation, that 
no policyholder shall recover under his policy of insurance 
over one thousand dollars until the membership reaches five 
hundred, and not over two thousand dollars when the mem¬ 
bership is over five hundred and less than one thousand; and 
after the membership reaches one thousand, the amount that 
any member can recover under any policy shall be limited to 
five thousand dollars: Provided, That no such company shall 
insure any person against damage to his own car on account 
of collision until the membership reaches one thousand. 

(266) Sec. 8. Any company incorporated under this sub¬ 
division shall have the right to provide in its articles of 
incorporation, for the collection at each assessment not ex¬ 
ceeding fifty cents per horse power on each automobile in¬ 
sured, for the purpose of accumulating a surplus in addition 
to such assessments as are necessary for the payment of 
current losses and expenses, until such time as the accumu¬ 
lated surplus of the company shall equal one dollar per horse 
power on each automobile insured. 

CHAPTER IV.—MUTUAL FIRE, CYCLONE AND HAIL 
COMPANIES. 

(267) Section 1. Companies may be incorporated upon 
the mutual plan to insure against loss and damage by fire, 
lightning, cyclones, windstorms, tornadoes and hail, by com¬ 
plying with the provisions of this chapter as provided in the 
succeeding sections. 

See Act 388, P. A. of 1921, secs. 355-59. 



LAWS RELATING TO INSURANCE. 


139 


(268) Sec. 2. Farmers’ Mutuals. Any number of per¬ 
sons, not less than seven, may associate together for the pur¬ 
pose of mutual insurance of the property of its members 
against loss by fire or damage by lightning, which property 
to be insured may embrace dwelling houses, stores and all 
other kinds of buildings, and upon household furniture, 
goods, wares and merchandise and any other property: Pro¬ 
vided, however, That where the property insured consists of 
buildings or personal property other than farm property, or 
dwelling houses and their contents, the amount of any one 
risk on either of said classes of property assumed by any 
company organized under the provisions of this section shall 
not exceed two thousand dollars: Provided further, That 
nothing herein contained shall authorize farmers’ mutuals 
organized under the provisions of this section to insure risks 
other than dwelling houses, their contents and farm property, 
situated within the corporate limits of any city or village 
whose population is in excess of five thousand inhabitants; 
nor in any city or villages having a population of less than 
five thousand inhabitants unless a majority of the members 
of such mutual company present at an annual meeting shall 
by affirmative resolution so determine: Provided further, 
That the limitations contained in the foregoing provisos shall 
not apply to companies organized under the provisions of 
section nine of this chapter. Whenever any public or private 
corporation, board or association in this state has entered 
into an agreement for and holds a policy in any such mutual 
insurance company, any officer, stockholder or trustee of 
any such corporation, board or association who may be desig¬ 
nated by such corporation, board or association, may be 
recognized as acting for or on its behalf for the purpose of 
such membership, but shall not be personally liable upon such 
contract of insurance by reason of acting in such representa¬ 
tive capacity. The right of any corporation organized under 
the laws of this state to participate as a member of any such 
mutual insurance company is hereby declared to be incidental 
to the purpose for which such corporation is organized and 
as much granted as the rights and powers expressly con¬ 
ferred. 


For other ^classification of automobile insurance, see secs. 131, 259, 263 and 
315 

Where a company describes the property in its policy as in a village, it is 
estopped from denying that the place described is a village, because it is neither 
platted nor incorporated.—Russell v. Detroit Mut. Fire Ins. Co., 80 / 407. Where, 
by the terms of the insurance contract, the statements in the application are 
made warranties, a misrepresentation as to the amount of incumbrance on the 
insured property will avoid the policy.—Niles v. Farmers’ Mut. Fire Ins. Co., 
119 / 252. The charter and by-laws of a mutual insurance company constitute 
a part of the contract of insurance.—Am. Ins. Co. v. Stoy, 41 / 385. A fire insur¬ 
ance company is not estopped to defend an action on a policy, on the ground 
of a wilful burning of the property by the plaintiff, by the fact of a criminal 
complaint made against the plaintiff by one of its officers and a discharge of the 
plaintiff on examination, or by the fact that, with knowledge of the circumstances, 
it collected an assessment from the plaintiff for the loss.—Barnett v. Mut. Fire 
Ins Co, 115 / 247. Authority of board of auditors of mutual fire insurance com¬ 
pany.—Denton v. Mut. Fire Ins. Co., 120 / 690. One who becomes a member of 
a foreign mutual insurance corporation subjects himself to such laws of the 
government of its situs as affect its powers and obligations. \\ arner v. Del- 
bridge & Cameron Co., 110 / 590. But the purchaser of property does not become 
a member of a mutual assurance company by assignment of a policy, without 


Who may 
associate; 
number. 


Proviso, 
risks other 
than farm 
property. 


Proviso, 
risks not 
authorized. 


Proviso, 
companies 
not here 
limited. 

Person acting 
for corpora¬ 
tion. 


Right of cor¬ 
poration to 
participate 
as member. 



140 


STATE OF MICHIGAN. 


Mercantile 

mutuals. 


Millers’ 

mutuals. 


Manufac¬ 

turers’ 

mutuals. 


the secretary’s approval, and the approval endorsed on the policy after loss will 
not avail.—Harper v. Mich. Mut. Tornado, Cyclone and Windstorm Ins. Co., 
173 / 459. A policy of insurance issued upon farm products, farm implements, 
etc., does not cover the fixtures and utensils of a slaughter-house, conducted by 
insured, and used in a wholesale meat business in which he is engaged.— 
Geraghty v. Insurance Co., 145 / 635. Where at the time of becoming a member 
of a mutual fire insurance company and receiving a policy, plaintiff signed a 
note for premium which provided that if it was not paid at a certain time the 
policy should become and remain void until the note should be paid, plaintiff 
is estopped to contend that the taking of the note was ultra vires, and that his 
failure to pay did not avoid his policy.—Hale v. Farmers’ Mutual Ins. Co., 
148 / 453. 4 mutual fire insurance company whose charter contemplates the 

issuance of policies, not mutual, for a cash premium, has no power to issue such 
policies, which are expressly prohibited by statute.—Ely v. Oakland Circuit Judge, 
162 / 466. Agents and officers of mutual fire insurance companies, in which the 
charter and by-laws determine the rights of members, have less authority than 
those of stock companies in creating a waiver of conditions contained in con¬ 
tracts; officers have no power to bind their companies by other inconsistent 
contracts or provisions.—Brewing Co. v. Fire Ins. Co., 168 / 606. The provisions 
of the charter of a mutual fire insurance company will be strictly construed 
against the company, where it is seeking to take advantage of them to defeat 
a claim.—Leonard v. Farmers’ Mut. Fire Ins. Co., 192 / 230. 

(260) Sec. 3. Mercantile Mutuals. Any number of own¬ 
ers or operators of banks or mercantile establishments, not 
less than ten, being residents of the state, may associate 
together and form an incorporated company for the purpose of 
insuring property against loss or damage by fire or lightning, 
which property, primarily to be insured, shall consist of 
merchandise, goods, chattels, ware houses, store and office 
fixtures; or secondarily, may include store buildings, ware 
houses, stores, out-buildings and their contents, used and 
held in the ordinary conduct of banking and mercantile busi¬ 
ness of the country. 

(270) Sec. 4. Millers’ Mutuals. Any number of owners 
or operators of flouring mills or grist and feed mills, not less 
than ten, being residents of the state, may associate together 
and form an incorporated company for the purpose of insur¬ 
ing property against loss or damage by fire or lightning, 
which property primarily to be insured shall consist of flour¬ 
ing, grist or feed mills, with the accompanying machinery 
and stock, or secondarily, may include elevators, ware houses, 
stores, store houses, or out buildings and their contents, or 
manufactories of flour, meal, feed or other products of the 
country, and the machinery necessary to run the same, and 
the stock connected with the manufacture or conduct of such 
business. 

(271) Sec. 5. Manufacturers’ Mutuals. Any number of 
owners or operators of mills, factories, buildings or machinery 
used for manufacturing purposes, residents of this state, not 
less than ten in number, may associate together and form an 
incorporated company, for the purpose of insuring the prop¬ 
erty of its members against loss or damage by fire or light¬ 
ning ; which property to be insured shall consist of mills, fac¬ 
tories, elevators and ware houses, or fixtures, tools, machin¬ 
ery, engines, and implements therein, and the lumber yards 
and raw material or manufactured products, stock and other 
property forming part of such manufacturing property belong¬ 
ing to such business. 

Policyholders in these companies are liable only for losses occurring during the 
lifetime of their policies.—Detroit M. Mut. F. Ins. Co. v. Merrill, 101 / 393. 
An arrangement by which the directors of a company organized hereunder execute 
a bond to the company for the purpose of establishing a reserve guaranty fund 




LAWS RELATING TO INSURANCE. 


141 


to its assets, to be drawn upon by the board of directors to protect policyholders 
from assessment upon deposit notes and which makes the obligors creditors of 
the company to the amount of advances, is void—Goss v. Peters, 98 /112. 

Limitation of actions.—Pratt v. Broadwell, 159 / 375. 

(272) Sec. 6. Threshers* Mutuals. Any number of man- Threshers’ 
ufacturers, owners or operators of grain, bean and grass seed mutuals - 
threshing machinery, hay pressing machinery, corn husker 

and shredder, portable engines, whether traction or other¬ 
wise, steam or gas, portable saw mills and feed-mills, oper¬ 
ated or driven by portable engines, not less than ten in num¬ 
ber, being residents of the state, may associate together and 
form an incorporated company for the purpose of insuring 
property against loss or damage by fire or lightning, which 
property primarily to be insured shall consist of portable 
engines, steam or gasoline, whether traction or otherwise, 
grain separators and attachments, bean threshers, clover 
hullers, hay pressing machinery, portable saw mills, and feed 
mills, operated or driven by portable engines. 

(273) Sec. 7. Retail Lumber Dealers’ Mutuals. Any Retail 
number of retail lumber dealers, whether incorporated or not, 

not less than twenty-five in number, who collectively shall mutuals, 
have invested in the retail lumber business an aggregated 
value of not less than fifty thousand dollars, may associate 
together and form an incorporated company for the purpose 
of insuring their stocks of lumber, sheds, offices and fixtures 
generally kept in retail lumber yards, against loss and dam¬ 
age by fire or lightning. 

(274) Sec. 8. Shoe Dealers’ Mutuals. Any number of S hoe dealers’ 
shoe dealers, whether individuals, co-partnerships or corpora- mutuals - 
tions, not less than twenty-five, who collectively shall have 

capital invested in the boot and shoe business within this 
state to the aggregate value of not less than one hundred 
fhousand dollars or more, may associate together and form 
an incorporated company for the purpose of insuring their 
stocks of boots and shoes, stores, store fixtures and contents 
against loss and damage by fire and lightning. 

(275) Sec. 9. Mutual Cyclone, Windstorm and Tornado Mutual 
Companies. Any number of persons, not less than twenty, $Xtorm 
may associate together and form an incorporated company and tornado 
for the purpose of insuring property against loss by cyclones, companies - 
windstorms and tornadoes, which property to be insured 

may embrace any kind or class of property mentioned in sec¬ 
tion two of this chapter. 

(276) Sec. 10. Mutual Hail Companies. Any number of Mutual hail 
persons not less than twenty, may associate together and companies, 
form an incorporated company for the purpose of insuring 
property of its members against loss or damage by hail, 

which property to be insured may embrace grains, fruits, 
and other farm products as the charters and by-laws of said 
companies may provide. 

(277) Sec. 11. When any team, harness, wagons and Temporary 
contents of such wagons are temporarily, not exceeding forty- a e b a s ^ e of 
eight hours continuously in a building, and not absent from wagons, etc. 
the owner’s premises to exceed ten days, placed in any build- 



142 


STATE OF MICHIGAN. 


Require¬ 
ments before 
commencing 
business. 


Miller’s. 


Manufac¬ 

turer’s. 


Hail. 


Liability of 
members, 
stated in 
articles. 


ing not insurable under the provisions of this chapter and said 
team, harness, wagons and contents of such wagons belong 
to a member of said company or companies, is destroyed or 
damaged by fire or lightning while temporarily, not exceeding 
forty-eight hours continuously in a building and not absent 
from the owner’s premises to exceed ten days in such building, 
the terms of the policy issued by any company organized under 
section two of this chapter shall be construed to cover such 
property so destroyed or damaged. 

Where the by-laws prohibit the insurance of village property within 100 feet 
of other buildings, a company is not liable for a horse, harness, cushion and 
blanket insured as “personal farm property in buildings and on farm,” but 
destroyed in the barn of a village hotel within 100 feet of other buildings.— 
Wildey v. Farmers’ Mut. Ins. Co., 52 / 446. Loss of horse by lightning while 
away from home barn; liability of company for loss.—Hapeman v. Mut. Fire Ins. 
Co., 126 / 191. 

(278) Sec. 12. No insurance company hereafter organ¬ 
ized under this chapter, except as herein otherwise provided, 
shall commence business until bona fide agreements have 
been entered into for insurance with at least one hundred 
individuals covering property to be insured to the amount 
of not less than one hundred thousand dollars; no company 
organized under section four of this chapter shall commence 
business until bona fide agreements have been entered into 
for insurance with at least ten individuals, covering prop¬ 
erty to be insured to the amount of not less than one hundred 
thousand dollars; no company organized under section five 
of this chapter shall commence business until it shall be 
possessed of not less than sixty thousand dollars in premiums, 
upon which not less than nine thousand dollars have been 
paid in cash, and the remainder in notes or agreements of 
solvent parties founded on actual bona fide applications for 
insurance; and no company organized under section ten of 
this chapter shall commence business until bona fide agree¬ 
ments have been entered into for insurance with at least one 
hundred individuals, covering property to be insured to the 
amount of not less than one hundred thousand dollars, which 
property in the first instance shall be located in not less than 
five counties, and not more than twenty-five thousand dollars 
of said property to be insured under such original application 
shall be located in any one county. 

Where the charter makes it the absolute right of farm owners in the county 
to become members on subscribing the articles and applying for insurance on 
prescribed terms, the secretary cannot cut off such right by refusing an actual 
tender from one already a member and an applicant for insurance.—Gay v. 
Farmers’ Mut. Ins. Co., 51 / 245. A policyholder in a mutual fire insurance 
company does not become a member, until he receives his policy.—Russell v. 
Detroit Mut. Fire Ins. Co., 80 / 407. Policies issued outside of the territorial 
limits fixed by this act are void.—'Eddy v. Mut. Fire Ins. Co., 72 / 651. 

(279) Sec. 13. It shall be the duty of the incorporators 
of any company organized under, or subject to the pro¬ 
visions of, this chapter to prescribe in their articles of asso¬ 
ciation, the liabilities of the members to be ratably assessed 
towards defraying the losses and expenses of such companies, 
and the mode and manner of collecting such assessments, and 
the members shall be liable to assessment for all liabilities of 



LAWS RELATING TO INSURANCE. 


143 


the company to the extent declared in the articles of associa¬ 
tion; and the liability of the persons insured in such com¬ 
panies and the members thereof, for the losses or expenses 
of such companies, shall not exceed the liabilities assumed 
by such persons when taking such insurance or by such mem¬ 
ber when joining such company, and in payment in full by 
such person or member of the amount assumed or agreed to 
be paid on taking such insurance, or on becoming a member 
of such company, the said persons so insured as aforesaid 
and the said members of such companies shall be released 
and absolved from any and all further liability, for such 
losses or expenses. 

A member of a mutual fire insurance company is liable, on surrender of his 
policy, for his proportionate share of all losses and expenses sustained by the 
company while his policy was in force, including deficiencies arising from failure 
to collect from irresponsible members their share of an assessment made to 
meet such expenses and losses.—Peake v. Yule, 123 / 675; Cavanagh v. Connon, 

123 / 685. Liability of persons to pay their proportion of assessments cannot be 
avoided by any arrangement with the company limiting such liability; nor can 
it be lessened by any provisions in the articles of association.—Russell v. Berry, 

51 / 287. Where the charter and by-laws require an assessment to be prepared 
by the secretary and signed by a majority of the board of directors, an unsigned 
and uncertified paper containing no headings to explain the figures set down 
cannot be treated as an official assessment.—Baker v. Cit. Mut. Fire Ins. Co., 

51 / 243. A void assessment is no impediment to a new assessment.—Farmers’ 

Mut. Fire Ins. Co. v. Judge, 100 / 606. Forfeiture of insurance, for non-payment 
of an assessment by a mutual insurance company cannot be sustained, where 
the assessment was invalid.—Johnson v. Mut. Fire Ins. Co., 110 / 488. Invalid 
assessment of mutual fire insurance company and ratification thereof.—Johnson 
v. Mut. Fire Ins. Co., 110 / 488. Forfeiture of mutual fire insurance policy by 
non-payment of assessment.—Hill v. Mut. Fire Ins. Co., 129/141. The accept¬ 
ance of past due assessments after loss and ordering payment is a waiver of 
forfeiture for delinquency in paying such assessments.—Farmers’ Mut. F. Ins. 

Co. v. Bowen, 40 / 147. 

(280) Sec. 14. TIig articles of association find by-laws Premium 

of any such company organized under or subject to the pro- p?ov?ded a for be 
visions of this chapter, may provide for the receiving of appli- in articles 
cations or agreements from its members for insurance, with and by_laws - 
or without taking from the insured any premium note or 
notes; and it shall be lawful for such mutual insurance com¬ 
panies, to make assessments upon such agreements, or policies 
issued thereon, or upon the premium note or notes, as the 
case may be, pro rata, according to the amount of such agree¬ 
ment or policies, or premium note or notes for the payment of 
the losses and expense, incurred by such companies, and all 
such premium notes, or agreements, or assessments, shall be 
a lien upon the property insured to the amount of such note, 
notes, agreements, assessments, costs and interest thereon. 

The statute makes every assessment a lien upon the property insured to the 
amount of the assessments, costs and interest due thereon.—Wardle v. Townsend, 

75 / 395. The receiver cannot maintain a bill in chancery to declare a lien on 
insured property where the amount involved is less than $100.00.—Peake v. 

Bradley, 121 / 182. As to when suits may be brought, see Baptist Church v. 

Insurance Co., 119 / 205; Putze v. Fire Insurance Co., 132 / 675. 

(281) Sec. 15. No company shall hereafter be organized companies 
under the provisions of this chapter for the purpose of insur- ^glnizS 
ing property other than that mentioned in sections one to 

eleven inclusive, hereof: Provided, That any mutual insur- proviso, real 
ance company whose business is limited by law or charter to or P er f* nal 
one or more counties, may provide m its charter or by amend- side county, 
ment to its charter for insuring the personal and real property 




144 


STATE OF MICHIGAN. 


Further 

proviso. 


Levy of 
assessments 
to cover 
liabilities. 


Proviso, ex¬ 
cessive loss. 


Penalty on 
officer refus¬ 
ing to make 
assessments. 


Circular item¬ 
ized report to 
members 
annually. 


of its members who reside within any county in which the 
company is authorized to do business, said real or personal 
property being situated outside said county or counties in 
which such company is authorized to insure, but in a county 
adjoining the same; and for extending the insurance on per¬ 
sonal property insured in the company, such as teams, har¬ 
nesses, robes, blankets, wagons, et cetera, when temporarily 
absent not to exceed thirty days in a county adjoining a 
county or counties in which said company is authorized to 
issue policies, during which insurance on such personal prop¬ 
erty shall be in force as fixed in the company’s charter in 
relation thereto: Provided further, That upon the adoption 
of such article the same shall automatically extend to all 
existing policies as if the same were incorporated therein. 

(282) Sec. 16. It shall be the duty of the president and 
secretary or other executive officer or officers having power 
to levy assessments for each and every mutual insurance 
company doing business in this state under authority of this 
chapter to levy an assessment on the members according to 
classification thereof, sufficiently to cover all liability of the 
company at each and every assessment: Provided, That if 
any year the total amount of loss of any such mutual insur¬ 
ance company exceeds the amount of four mills on a dollar, 
the said officers of such company may carry forward one-half 
of such total amount of loss in excess thereof and include 
such sum in an assessment to be made during the year imme¬ 
diately following. The remaining amount of such loss in 
excess thereof shall be carried forward and included in an 
assessment to be made during the second year immediately 
following the year during which such loss was sustained. 

(283) Sec 17. Any person being a resident of this state, 
acting as president, secretary or other officer of any such 
mutual insurance company, doing business in this state under 
authority of this chapter who shall wilfully refuse, or neglect 
to make assessments as provided in the last preceding section 
of this chapter shall be deemed guilty of a misdemeanor, and 
upon conviction thereof shall be punished by a fine not ex¬ 
ceeding one thousand dollars nor less than five hundred dol¬ 
lars, or by imprisonment in the county jail not less than six 
months nor more than one year, or both such fine and im¬ 
prisonment in the discretion of the court. 

(284) Sec. 18. That it shall be the duty of the secretary 
of each mutual insurance company, doing business in this 
state under authority of this chapter to make out and deliver 
by mail, or otherwise, each year, to each individual mem¬ 
ber of such company, a printed schedule or circular itemized 
report, giving statement of all money, or moneys, received by 
such company during the year, and on what account, and 
from what source received, and the total amount received 
during the year; and also giving an itemized statement of all 
the money or moneys paid out, or disbursed during the year 
by such company, and for what purpose or purposes, also the 
total amount paid out. 



LAWS RELATING TO INSURANCE. 


145 


(285) Sec. 19. Any person, being a resident of this 
state, acting as secretary of any such mutual insurance 
companies, doing business in this state, who shall wilfully 
refuse, or neglect to make out and deliver the reports, as 
provided in the last preceding section of this chapter, shall 
be deemed guilty of a misdemeanor, and on conviction thereof, 
shall be subject to a fine of not more than one hundred 
dollars. 

(286) Sec. 20. That any justice of the peace of this state 
is hereby authorized and required to issue subpoenas, and 
compel the attendance of witnesses before the president, vice- 
president, secretary, board of directors, or either of the di¬ 
rectors, or the auditor or board of auditors of any mutual 
insurance company organized under the laws of this state, 
whenever requested so to do by said officers of such insurance 
companies, or any one of them, or the insured, to give evidence 
in any matter touching the adjustment or arbitration of 
losses by fire or other cause which may come before such 
officer or officers; and such subpoena shall be valid to compel 
the attendance of a witness within the same county where 
such matter is to be tried, and within thirty miles of the 
place of such trial. The opposite party interested in such 
adjustment or arbitration shall be notified, without cost to 
him or them, at least twenty-four hours in advance, of the 
time and place where such witnesses are to be examined, 
and he or they shall have the right to appear by attorney or 
in person, and cross-examine all witnesses produced. 

Unreasonable delay in arbitrating justifies action on policy.—Shapiro v. Patrons 
Mut. Fire Ins. Co. of Mich., 219/581. 

(287) Sec. 21. Any such subpoena may be served by a 
sheriff, constable or any other person, and it shall be served 
by delivering a copy thereof, and by paying or tendering to 
him the same fees for traveling and one day’s attendance as 
are allowed by law in justice courts. 

(288) Sec. 22. Whenever it shall appear to the satis¬ 
faction of said justice of the peace, by affidavit of a party 
interested in said adjustment or arbitration, or by other 
competent testimony, that any person duly subpoenaed to 
appear as required in said subpoena, shall have refused or 
neglected without just cause to attend as a witness in con¬ 
formity to such subpoena, and the testimony of such witness 
is material, as the deponent verily believes, the said justice 
shall have power to issue an attachment to compel the at¬ 
tendance of such witness, and said witness shall be liable for 
the cost of such attachment for the service of the same, which 
costs may be recovered in an action of assumpsit at the suit 
of the party injured by such neglect or refusal, before any 
court having competent jurisdiction in like cases, and shall 
moreover be liable to said injured party in damages. 

(289) Sec. 23. Any one of said officers of such insurance 
companies shall have the power, and they are hereby author¬ 
ized to administer an oath to said witnesses or parties so 


Penalty for 
not making 
report. 


Compelling 
attendance of 
witnesses. 


Service of 
subpoena. 


Attachment 
to compel 
attendance. 


Officers may 

administer 

oaths. 




146 


STATE OF MICHIGAN. 


Who may 
incorporate. 


Proviso, 
number on 
pay rolls. 


Articles of 
association, 
what to 
set forth. 


testifying before them in the adjustment or arbitration of 
such losses, and said witnesses shall be liable to the same 
pains and penalties for perjury as are now provided by law. 


PART FIVE.—SPECIAL FORMS OF INSURANCE. 

CHAPTER I.—EMPLOYER’S LIABILITY. 

Sub-Division One. 

(290) Section 1. Any number of persons, firms, part¬ 
nership, associations or corporations, not less than five, who 
have become subject to the provisions of the laws of Michigan 
relating to employer’s liability and workmen’s compensation, 
and who own or operate mills, factories, manufacturing estab¬ 
lishments of any and every kind, buildings, stores, hotels and 
mercantile establishments, or any combination of manufactur¬ 
ing and mercantile business, mines, quarries, blast furnaces, 
railroads and transportation companies, telegraph and tele¬ 
phone companies, or who are engaged in the production or 
supplying of gas and electricity for lighting, fuel, power, or 
other purposes; printing, publishing and bookmaking or in 
carrying on any other lawful business in the state of Michi¬ 
gan, may associate together and form an incorporated com¬ 
pany for the purpose of mutual insurance of its members 
against liability for any and all payments which may become 
due and payable to their employes under the provisions of 
law for death benefits, disability benefits, or otherwise, as 
hereinbefore set forth: Provided, however, That the persons, 
firms or corporations so associating themselves together for 
the organization of such company shall have on their pay 
rolls at that time not less than five thousand employes. 

Act 43, P. A. of 1921, abolished the industrial accident board, and transfers 
its powers and duties to the department of labor and industry, created by the 
above-mentioned act. 

(291) Sec. 2 . In addition to the requirements of chapter 
one, part two hereof, such articles of association shall set 
forth: 

The names of the persons, firms, partnership associations 
and corporations associating in the first instance, their re¬ 
spective residences, the nature of the business in which they 
are engaged, and the number of persons employed therein by 
each of them; 

That each and all of such incorporators have elected, with 
the approval of the industrial accident board, to become sub¬ 
ject to the provisions of act number ten, public acts of nine¬ 
teen hundred twelve, first extra session, and are forming this 
corporation for the purpose of mutually insuring their mem¬ 
bers against liability for any and all payments which may 
t become due and payable to their employes under the provi- 
i sions of said act. 



LAWS RELATING TO INSURANCE. 


147 


(292) Sec. 3. The board of directors shall determine the Amount of 
amount of the premiums or assessments which the mem- etc.^how’ 
bers of such company shall pay for such insurance, in ac- determined, 
cordance with the nature of the business in which they are 
engaged, and the probable risk of injury to their employes 

under existing conditions. The board may also prescribe How and 
when and in what manner such premiums shall be paid, and when pald ' 
may change the amount thereof both in respect to any or 
all of its members from time to time, as circumstances may 
require and the conditions of their respective plants, estab¬ 
lishments or places of work in respect to the safety of their 
employes may justify, but all such premiums or assessments 
shall be levied on a basis that shall be fair, equitable and 
just as among such members; and it shall be the duty of 
such board of directors at the beginning of each fiscal year, 
to call for the required payment of premiums in such 
amount as shall, in the judgment of the commissioner of in¬ 
surance, be sufficient to enable such company to pay all 
sums which may become due and payable during the follow¬ 
ing year, to the employes or any of its members and also the 
expenses of conducting its business. 

(293) Sec. 4. The company shall in its by-laws and contingent 
policies fix the contingent mutual liability of its members mutual 
for the payment of losses and expenses not provided for by habl lty ' 
its cash funds. Such contingent liability of a member shall 

not be less than an amount equal to the liability imposed 
by this act and of act number ten, public acts of nineteen 
hundred twelve, first extra session. 

(294) Sec. 5. If the company is not possessed of cash Assessment 

funds so that it has unearned premiums sufficient for the for * 

payment of incurred losses and expenses, it shall make an 
assessment for the amount needed to pay such losses and 
expenses upon the members liable to assessment therefor in 
proportion to their several liability. Every member shall 

pay his proportional part of any assessment which may be 
laid by the board of directors, in accordance with the law 
and his contract on account of injuries sustained and ex¬ 
penses incurred while he is a member of such company. 

(295) Sec. 6 . The board of directors may, from time to Dividends 

time, by vote, fix and determine the amount to be paid as e? P i?fng. ies 

a dividend upon policies expiring during each year after re¬ 
taining sufficient sums to pay all the compensation which 

may be payable on account of injuries sustained and ex¬ 
penses incurred. All premiums, assessments and dividends how 
shall be fixed and determined in accordance with the ex- determined, 
perience of said company, but all the funds of the company, 
and the contingent liability of all the members thereof, shall 
be available for the payment of any claim against the com¬ 
pany. 

(296) Sec. 7. Any proposed premium or assessment re- To be filed 
quired of, or any dividend or distribution made to the mem- and approv< 
bers, shall be filed with the commissioner of insurance, and! 



148 


STATE OF MICHIGAN. 


Rules and 
regulations. 


Aggrieved 

members. 


Withdrawals. 


Proviso, 

notice. 


Further 

proviso, 

liability. 


Classification 
of risks, etc., 
to be filed. 


Unfair dis¬ 
crimination. 


shall not take effect until approved by said commissioner 
after such investigation as he may deem necessary. 

(297) Sec. 8. The board of directors may make and en¬ 
force reasonable rules and regulations, not in conflict with 
the laws of this state, for the prevention of injuries on the 
premises of members, and for this purpose the inspectors of 
the company shall have free access to all such premises dur¬ 
ing regular working hours. Any member neglecting to pro¬ 
vide suitable safety appliances as provided by law or as re¬ 
quired by the board of directors may be expelled by a ma¬ 
jority vote of all the members. Any member, or employe 
of any member, aggrieved by any such rule or regulation, 
may petition the industrial accident board for review, and 
it may affirm, amend or annul the rule or regulation. 

(298) Sec. 9. Any member of said company, who has com¬ 
plied with all its rules, regulations and demands, may with¬ 
draw therefrom at the expiration of the period of one year 
for which he has elected to become subject to the provisions 
of the workmen’s compensation act, so-called: Provided, how¬ 
ever, That he shall give written notice of such withdrawal 
to said company at least thirty days before the expiration 
of such period: And provided further, That if at the time 
of such withdrawal liability may exist against such mem¬ 
ber and against said company for compensation to employes 
who have been theretofore killed or injured as in said act 
provided, such member shall either relieve himself and said 
company from such liability in the manner provided in part 
four, section four of act number ten, public acts of nineteen 
hundred twelve, extra session, or shall otherwise protect 
and indemnify said company against such liability in such 
reasonable manner as may be required by the board of di¬ 
rectors. 

Sub-Division Two. 

(299) Sec. 10. Every employer’s liability company and 
every employer’s insurance association insuring employers 
against the liability provided for by act number ten of the 
public acts of nineteen hundred twelve, first extra session, 
as amended, shall file with the insurance commissioner of 
the state its classification of risks and normal premiums re¬ 
lating thereto together with any and all reasonable percent¬ 
age of allowance made upon such premiums above or below 
the said normal premium for increased or diminished haz¬ 
ards in said classifications of risks. The classifications so 
filed shall be classifications upon which the insurer filing 
same shall classify its risks and the premiums and per¬ 
centages of allowances thereon shall be the premiums which 
must be charged by the insurer filing same, on its risks un¬ 
til such classification and premiums and percentage allow¬ 
ances shall be changed as herein provided. 

(300) Sec. 11. No insurer against liability provided for 
in this chapter shall fix any classification or allowance or 
charge any premium against liability under said act number 




LAWS RELATING TO INSURANCE. 


149 


ten of the public acts of nineteen hundred twelve, which is 
unreasonable or which discriminates unfairly between risks 
in the application of like charges and credits, or which dis¬ 
criminates unfairly between risks on essentially the same 
hazards and having substantially the same degree of pro¬ 
tection against accident. 

(301) Sec. 12. Any deviation of any such insurer from 
the classifications and schedules of premiums and percent¬ 
ages relating hereto, as filed with the insurance commis¬ 
sioner shall be uniform in its application to all the risks in 
the class for which the deviation is made, and no such uni¬ 
form deviation shall be made unless notice thereof shall be 
filed with the insurance commissioner of the state at least 
fifteen days before such uniform deviation is in effect. 

(302) Sec. 13. The state banking commissioner, the at¬ 
torney general and the commissioner of insurance, of this 
state, shall constitute a commission, and upon written com¬ 
plaint or upon its own information that discrimination in 
classification of risks or in the normal premiums relating 
thereto, or in any percentage of allowance upon such pre¬ 
miums exists, or that any such classification of risks or that 
any premiums or any percentage of allowance upon such 
premiums discriminates between risks of essentially the 
same hazard and having substantially the same degree of 
protection against accident, the commission may order a 
hearing for the purpose of determining such questions of 
discrimination and the review of such classification of risks, 
such premiums or such percentage allowance before said 
commission shall be had only after due notice to all parties 
interested, and if upon such hearing the commission shall 
determine that said classification, such premium or pre¬ 
miums or such percentage allowance is or are discriminatory, 
it shall have power to order the discrimination removed. 
Any party in interest being dissastified with any order of 
the commission may within thirty days from the issuance 
of such order and notice thereof commence an action in the 
circuit court in chancery for the county of Ingham against 
the commission, as defendant, to vacate and set aside any 
such order upon the ground that such order is unlawful or 
unreasonable; in which suit the commission shall be served 
with a subpoena and a copy of the complaint. The com¬ 
mission shall file its answer and on leave of court any in¬ 
terested party may file an answer to said complaint. Upon 
the filing of the answer of the commission said action shall 
be at issue and stand ready for hearing upon ten days’ no¬ 
tice by either party. The said circuit court for the county 
of Ingham in chancery is hereby given jurisdiction of such 
suits and empowered to affirm, vacate or set aside the order 
of the commission in whole or in part, and to make such 
other order or decree as the court shall decide to be in ac¬ 
cordance with the facts arid the law. During pendency of 
such proceedings the order shall be suspended, and in the 


Uniform 

deviation. 


Anti-discrim¬ 
ination com¬ 
mission 
created. 


May order 
hearing. 


Action to 
vacate order. 


Answer. 


When 
at issue. 


Jurisdiction. 



150 


STATE OF MICHIGAN. 


event of final determination against any insurer, any over¬ 
charge during the pendency of such proceedings shall be re¬ 
funded by the insurer to the persons entitled thereto. 

CHAPTER II.—RECIPROCAL INSURANCE. 


Reciprocal 

insurance. 


Proviso, 

indemnity 

against 

accident. 

Who may 
execute. 


Declaration, 
what to 
set forth. 


Service of 
process. 


(303) Section 1 . Individuals, partnerships and corpor¬ 
ations of this state, hereby designated subscribers, are 
hereby authorized to exchange reciprocal or inter-insurance 
contracts with each other, or with individuals, partnerships 
and corporations of other states and countries providing in¬ 
demnity among themselves and from any loss which may be 
insured against under other provisions of the laws, includ¬ 
ing employers’ liability and workmen’s compensation insur¬ 
ance, and excepting life, health and accident insurance: 
Provided, however, That indemnity against accident may be 
exchanged between persons engaged in the same general 
line of employment. 

(304) Sec. 2. Such contracts may be executed by an at¬ 
torney, agent or other representative, herein designated at¬ 
torney, duly authorized and acting for such subscribers. 

(305) Sec. 3. Such subscribers so contracting among 
themselves shall through their attorney file with the insur¬ 
ance commissioner of this state a declaration verified by the 
oath of such attorney, setting forth: 

(a) The name or title of the office at which such sub¬ 
scribers propose to exchange such indemnity contracts; 

(b) The kind or kinds of insurance to be effected or ex¬ 
changed ; 

(c) A copy of the form of policy contract or agreement 
under or by which such insurance is to be effected or ex¬ 
changed ; 

(d) A copy of the form of power of attorney or other 
authority of such attorney under which such insurance is to 
be effected or exchanged, which form or forms of policy con¬ 
tract mentioned in sub-division (c) shall authorize such at¬ 
torney to comply with the provisions of section four of this 
chapter; 

(e) The location of the office or offices from which such 
contracts or agreements are to be issued; 

(f) That applications have been made for indemnity up¬ 
on at least one hundred separate risks aggregating not less 
than one and one-half million dollars as represented by exe¬ 
cuted contracts or bona fide applications to become con¬ 
currently effective, or, in case of liability or compensation 
insurance covering a total payroll of noteless than one and 
one-half million dollars; 

(g) That there is on deposit with such attorney and 
available for the payment of losses, a sum of not less than 
twenty-five thousand dollars. 

(306) Sec. 4. Concurrently with the filing of the declara¬ 
tion provided for by the terms of section three hereof, the 
attorney shall file with the insurance commissioner an in- 




LAWS RELATING TO INSURANCE. 


151 


strument in writing executed by him for said subscribers, 
conditioned that upon the issuance of certificate of author¬ 
ity provided for in section ten hereof, service of process may 
be had upon the insurance commissioner in all suits in this 
state arising out of such policies, contracts or agreements, 
which service shall be valid and binding upon all subscribers 
exchanging at any time reciprocal or inter-insurance con¬ 
tracts through such attorney. Three copies of such process copies of 
shall be served and the insurance commissioner shall file one process. ° f 
copy, forward one copy to said attorney, and return one 
copy with his admission of service. 

(307) Sec. 5. There shall be filed with the insurance statement, 
commissioner of this state by such attorney a statement “ngiTrisk. 
under the oath of such attorney, showing the maximum 
amount of indemnity upon any single risk, and such attor¬ 
ney shall, whenever and as often as the same shall be re¬ 
quired, file with the insurance commissioner a statement Commercial 
verified by his oath to the effect that he has examined the sSbscribers. 
commercial rating of such subscribers as shown by the 
reference book of a commercial agency having at least one 
hundred thousand subscribers, and that from such examina¬ 
tion or from other information in his possession it appears 

that no subscriber has assumed on any single risk an amount 
greater than ten per cent of the net worth of such subscriber. 

(308) Sec. 6 . There shall at all times be maintained as Reserve fund 
a reserve, a sum in cash or convertible securities equal to 

fifty per cent of the net annual deposits collected and 
credited to the accounts of the subscribers on policies having 
one year or less to run and pro rata on those for longer 
periods. Net annual deposits shall be construed to mean the Net annual 
advance payments of subscribers after deducting therefrom coEucW™ 
the amounts specifically provided in the subscriber’s agree¬ 
ments, for expenses. Said sum shall at no time be less than 
twenty-five thousand dollars, and if at any time fifty per 
cent of the deposits so collected and credited shall not equal 
that amount, then the subscribers, or their attorney for them, 
shall make up any deficiency. 

(309) Sec. 7. Such attorney shall make a report to the Annual 
insurance commissioner for each calendar year, on the fif- statements, 
teenth day of February, showing the financial condition of 
affairs at the office where such contracts are issued and shall 
furnish such additional information and reports as may be 
required: Provided, however, That such attorney shall not proviso, 
be required to furnish the names and addresses of any sub¬ 
scribers, nor the loss ratio. The business affairs, assets and 
contingent liability of such organizations shall be subject 

to examination by the insurance commissioner. 

(310) Sec. 8. Any corporation now or hereafter organ- power to 
ized under the laws of this state shall, in addition to the 
rights, powers and franchises specified in its articles of in¬ 
corporation, have'full power and authority to exchange in¬ 
surance contracts of the kind and character herein men¬ 
tioned. The right to exchange such contracts is hereby de- 



152 


STATE OF MICHIGAN. 


Solicitation, 
etc., without 
certificate of 
authority. 


Misdemeanor. 


Certificate of 
authority to 
be procured 
annually. 


Commissioner 
may revoke 
certificate. 


Annual 
license fee. 


Exemption. 


dared to be inddental to the purposes for which such cor¬ 
porations are organized, and as much granted as the rights 
and powers expressly conferred. 

(311) Sec. 9. Any attorney who shall, except for the 
purpose of applying for certificate of authority as herein 
provided, exchange any contracts of indemnity of the kind 
and character specified in this chapter, or directly or in¬ 
directly solicit or negotiate any applications for same with¬ 
out first complying with the foregoing provisions, shall be 
deemed guilty of a misdemeanor, and upon conviction there¬ 
of shall be subject to a fine of not less than one hundred 
dollars nor more than one thousand dollars. 

(312) Sec. 10. Each attorney by or through whom are 
issued any policies of or contracts for indemnity of the 
character referred to in this chapter, shall procure from the 
insurance commissioner annually a certificate of authority 
stating that all the requirements of this chapter have been 
complied with, and upon such compliance and the payment 
of the fees required by this chapter, the insurance commis¬ 
sioner shall issue such certificate. In case of a breach of 
any of the conditions imposed by the provisions of this chap¬ 
ter, the insurance commissioner may revoke the certificate 
of authority issued hereunder. 

(313) Sec. 11. Such attorney, in lieu of all other taxes, 
of whatever character in this state, shall pay to the state 
with the filing of each annual report, as an annual license 
fee two per cent of the gross premiums or deposits for the 
preceding calendar year, deducting all amounts distributed 
to subscribers or credited to their accounts. 

(314) Sec. 12. Except as specified in this chapter, the 
making of contracts as in this chapter provided for and such 
other matters as are incident thereto, shall not be subject 
to the laws of this state relating to insurance unless they 
are therein specifically mentioned. 


CHAPTER III.—GENERAL MUTUAL LAW. 


Number may 
associate. 


Articles of 
association, 
contents. 


(315) Section 1. Any number of persons, not less than 
twenty, a majority of whom shall be bona fide residents of 
this state, by complying with the provisions of this chapter, 
may become together with others who may hereafter be as¬ 
sociated with them or their successors, a body corporate, 
for the purpose of carrying on the business of mutual insur¬ 
ance as herein provided. 

(316) Sec. 2. Any persons proposing to form any such 
company shall subscribe and acknowledge articles of associa¬ 
tion specifying: 

(a) The name, the purpose for which formed and the loca¬ 
tion of its principal or home office, which shall be within this 
state; 



153 


laws relating to insurance. 


i names and addresses of those composing the 

hoard ot directors in which the management shall be vested 
until the first meeting of the members; 

names an d places of residence of the corporators. 

(dl7) S EC 3. No name shall be adopted by such com- Corporate 
pany which does not contain the word “mutual” or which name * 
is so similar to any name already in use by any such exist¬ 
ing corporation, company or association, organized or doing 
business in the United States, as to be confusing or .mis¬ 
leading. & 

•l? 1 ?) 4 ‘ Such articles of association shall be sub- commissioner 

mitted to the commissioner of insurance, herein designated J-° ?P prov £ 
commissioner, and if prepared in accordance with this association, 
chapter, he shall approve and file the same in his office. Such How 
articles of association may be amended by a majority vote of amended - 
members voting at any annual or special meeting called for 
that purpose. Notice of such annual or special meeting and Notice of 
the purpose thereof shall be either served on each member anmial meet - 
at least three weeks previous thereto, or published in a news- ,ng ' 
paper printed, published and circulated within the county or 
counties in which the said company is transacting business, 
at least two successive weeks prior to said meeting, the last 
publication to be made at least five days prior to date of 
holding such meeting. Any such amendment shall be filed 
as provided by law for the original articles. 

Am. 1921, Act 396. 

(319) Sec. 5. The company shall have legal existence Le „ al 
from the approval and filing of such articles in the office of existence, 
the commissioner. The board of director*? named in such By -iaws 
articles may thereupon adopt by-laws and proceed to trans¬ 
act the business of such company: Provided, That no insur- Proviso, 
ance shall be put into force until the company has been 
licensed to transact insurance as provided by this chapter. 

(320) Sec. 6. Any company or their agents organized Authority to 
under the provisions of this chapter is empowered and au- make con ' 
thorized to make contracts of insurance or to reinsure or ac- tracts ' 
cept reinsurance on any portion thereof, for the kinds of in¬ 
surance following, to the extent permitted to any one stock 
insurance company: Provided, however, That companies do- proviso, 
ing a general casualty business shall be permitted to insure 
automobiles against the hazard of fire: 

1. Fire Insurance. Against loss or damage to property Fire 
and loss of use and occupancy by fire, lightning, windstorm, 
tornado, cyclone, hail, tempest, flood, earthquake, frost or 
snow, bombardment, invasion, insurrection, riot, civil war 
or commotion, military or usurped power, explosion, fire 
ensuing, and explosion, no fire ensuing, except explosion by 
steam boilers or fly-wheels; against loss or damage by water 
caused by the breakage or leakage of sprinklers, pumps, or 
other apparatus, water pipes, plumbing or their fixtures, 
erected for extinguishing fires, and against accidental injury 
to such sprinklers, pumps, other apparatus, water pipes, 




154 


STATE OF MICHIGAN. 


Liability. 


Disability. 


Automobile. 


Steam boiler. 


Use and 
occupancy. 


Miscellaneous. 


Conditions 
governing 
issuance 
of license. 


Bona fide 
applications. 


plumbing or fixtures, against loss or damage to any goods or 
premises of the assured and loss or damage to the property 
of another for which the assured is liable, caused by the leak¬ 
age of roofs, leaders, and spouting, or by rain and snow 
driven through broken and open windows and skylights, or 
caused by the contents of any tank, or impact of any falling 
tank, platform or supports erected in or upon any building; 
against the risks of transportation and navigation; upon 
automobiles, aircraft or other vehicles, whether or not op¬ 
erated under their own power, against loss or damage by any 
of the causes or risks specified in this sub-section, including 
also explosion, transportation, collision, liability for loss or 
damage by reason of bodily injury to the person, liability for 
damage to property resulting from owning, maintaining or 
using any automobiles, aircraft or other vehicles, and in¬ 
cluding burglary and theft. 

2. Liability Insurance. Against loss, expense or liability 
by risk or bodily injury or death by accident, disability, sick¬ 
ness or disease suffered by others for which the insured may 
be liable or have assumed liability, including workmen’s com¬ 
pensation. 

3. Disability Insurance. Against bodily injury or death 
by accident, and disability by sickness. 

4. Automobile Insurance. Against loss, expense and li¬ 
ability resulting from the ownership, maintenance or use of 
any automobile or other vehicle. 

5. Steam Boiler Insurance. Against loss or liability to 
persons or property resulting from explosions or accidents 
to boilers, containers, pipes, engines, fly-wheels, elevators and 
machinery in connection therewith and against loss of use 
and occupancy caused thereby and to make inspection and 
issue certificates of inspection thereon. 

6. Use and Occupancy Insurance. Against loss from in¬ 
terruption of trade or business which may be the result of any 
accident or casualty. 

7. Miscellaneous Insurance. Against loss or damage by 
any hazard upon any risk not provided for in this section, 
which is not prohibited by statute or at common law from 
being the subject of insurance, excepting life insurance. 

Am. 1921, Act 396. 

(321) Sec. 7. No such company shall issue policies or 
transact any business of insurance unless it shall hold a 
license from the commissioner authorizing the transaction of 
such business, which license shall not be issued until and un¬ 
less the company shall comply with the following conditions: 

(a) It shall hold bona fide applications for insurance up¬ 
on which it shall issue simultaneously, or it shall have in 
force, at least twenty policies to at least twenty members 
for the same kind of insurance upon not less than two hun¬ 
dred separate risks, each within the maximum single risk 
described herein. 



LAWS RELATING TO INSURANCE. 


155 


(b) The “maximum single risk” shall not exceed twenty 
per cent of the admitted assets or three times the average 
risk or one per cent of the insurance in force, whichever is 
the greater, any reinsurance taking effect simultaneously 
with the policy being deducted in determining such maxi¬ 
mum single risk. 

(c) It shall have collected a premium upon each applica¬ 
tion, which premium shall be held in cash or securities in 
which insurance companies are authorized to invest and 
shall be equal, in case of fire insurance to not less than 
twice the maximum single risk assumed subject to one fire 
nor less than ten thousand dollars, and in any other kind 
of insurance to not less than five times the maximum single 
risk assumed, and in case of workmen’s compensation insur¬ 
ance to not less than fifty thousand dollars. 

(d) For the purpose of transacting employer’s liability 
and workmen’s compensation insurance the applications shall 
cover not less than one thousand five hundred employes, 
each such employe being considered a separate risk for de¬ 
termining the maximum single risk. 

(322) Sec. 8. Any public or private corporation, board 
or association in this state or elsewhere may make applica¬ 
tions, enter into agreements for and hold policies in any 
such mutual insurance company. Any officer, stockholder, 
trustee or local representative of any such corporation, 
board, association, or estate may be recognized as acting 
for or on its behalf for the purpose of such membership, but 
shall not be personally liable upon such contract of insur¬ 
ance by reason of acting in such representative capacity. 
The right of any corporation organized under the laws of 
this state to participate as a member of any such mutual 
insurance company is hereby declared to be incidental to the 
purpose for which such corporation is organized and as 
much granted as the rights and powers expressly conferred. 

(323) Sec. 9. Every member of the company shall be 
entitled to one vote, or to a number of votes based upon the 
insurance in force, the number of policies held, or the amount 
of premiums paid, as may be provided in the by-laws. 

(324) Sec. 10. The policies shall provide for a premium 
or premium deposit payable in cash and, except as herein 
provided, for a contingent premium at least equal to the 
premium or premium deposit. Such mutual company may 
issue a policy without a contingent premium while it has a 
surplus equal to the capital required of a domestic stock in¬ 
surance company transacting the same kinds of insurance, 
and in no event shall the holder of any such policy be liable 
for a greater amount than the premium or premium deposit 
expressed in the policy. If at any time the admitted assets 
are less than the reserve and other liabilities, the company 
shall immediately collect upon policies with a contingent 
premium a sufficient proportionate part thereof to restore 
such assets, provided no member shall be liable for any part 


Maximum 
single risk. 


Premiums 

collected. 


Employer’s 

liability 

insurance. 


When cor¬ 
porations and 
associations 
become 
members. 


Votes member 
entitled to. 


Premium or 
deposit. 


Policy with¬ 
out contin¬ 
gent pre¬ 
mium. 




156 


STATE OF MICHIGAN. 


Investment 
of assets. 


To maintain 

reserves 

separately. 


Proviso. 


Assessment to 
restore assets. 


Proviso. 


Director, 
etc., may 
advance 
money to 
company. 


Not liability 
of company. 


Commission 
not to be 
paid from. 


Taxable 

premiums. 


Proviso. 


of such contingent premium in excess of the amount de¬ 
manded within one year after the termination of the policy. 
The commissioner of insurance may, by written order, direct 
that proceedings to restore such assets be deferred during the 
time fixed in such order. 

Am 1921, Act 396. 

As to capital required of domestic stock companies, see sections 132, 227. 

(325) Sec. 11. No such company shall invest any of its 
assets except in accordance with the laws of this state re¬ 
lating to the investment of the assets of domestic stock com¬ 
panies transacting the same kind of insurance. 

(326) Sec. 12. Such company shall maintain unearned 
premium and other reserves separately for each kind of in¬ 
surance, upon the same basis as that required of domestic 
stock insurance companies transacting the same kind of in¬ 
surance: Provided, That any reserve for losses or claims 
based upon the premium income shall be computed upon the 
net premium income, after deducting any so-called dividend 
or premium returned or credited to the member. 

(327) Sec. 13. Such company not possessed of assets at 
least equal to the unearned premium reserve and other lia¬ 
bilities shall make an assessment upon its members liable 
to assessment to provide for such deficiency, such assess¬ 
ment to be against each such member in proportion to such 
liability as expressed in his policy: Provided, The commis¬ 
sioner may, by written order, relieve the company from an 
assessment or other proceedings to restore such assets dur¬ 
ing the time fixed in such order. 

(328) Sec. 11. Any director, officer or member of any 
such company, or any other person, may advance to such 
company, any sum or sums of money necessary for the pur¬ 
pose of its business or to enable it to comply with any of 
the requirements of the law, and such moneys and such in¬ 
terest thereon as may have been agreed upon, not exceeding 
seven per cent per annum, shall not be a liability or claim 
against the company or any of its assets, except as herein 
provided, and shall be repaid only out of the surplus earn¬ 
ings of such company. No commission nor promotion ex¬ 
penses shall be paid in connection with the advance of any 
such money to the company and the amount of such advance 
shall be reported in each annual statement. 

(329) Sec. 15. The taxable premiums of any mutual in¬ 
surance company admitted in this state under this chapter 
for the purpose of taxation under any law of this state shall 
be the gross direct premiums received for insurance upon 
property or risks in this state, deducting premiums upon 
policies not taken and premiums returned on cancelled pol¬ 
icies and also any so-called dividend or other return made 
to the policyholder other than for losses: Provided, That 
in case of any company receiving deposits or deposit pre¬ 
miums, the taxable premiums shall be the portion of such 
deposits or deposit premiums earned during the year. 




LAWS RELATING TO INSURANCE. 


157 


(330) Sec. 16. The provisions of this chapter shall not 
apply to any company of this state now doing business un¬ 
less such company shall be fully complying with the require¬ 
ments of this chapter and shall by resolution of its board 
of directors duly certified to by the president and secretary 
and filed with and approved by the commissioner have elected 
to adopt the provisions of this chapter in which case such 
company may thereafter effect such kind or kinds of insur¬ 
ance as specified in its articles of association as then or 
thereafter amended or as may be specified in such resolu¬ 
tion. 

(831) Sec. IT. Such mutual company may insert in any 
form of policy prescribed by the law of this state any pro¬ 
visions or conditions required by its plan of insurance, which 
are not inconsistent or in conflict with any law of this state. 
Such policy, in lieu of conforming to the language and form 
prescribed by such law, may conform thereto in substance, 
if such policy includes a provision or endorsement reciting 
that tlie policy shall be construed as if in the language and 
form prescribed by such law, and a copy of such policy and 
endorsement, if any, shall have been first filed with and 
shall not have been disapproved by the commissioner. 

(332) Sec. 18. Such mutual company shall comply with 
the provisions of any law applicable to stock insurance com¬ 
panies effecting the same kind of insurance requiring that 
policies be countersigned and delivered through a resident 
agent: Provided, That this requirement shall not apply to 
any policy of such mutual company on which no commission 
shall be paid to any local agent. 

(333) Sec. 19. Any mutual insurance company organ¬ 
ized outside of this state and authorized to transact the 
business of insurance on the mutual plan in any state, dis¬ 
trict or territory, shall be admitted and licensed to transact 
the kinds of insurance authorized by its charter or articles 
of association to the extent and with the powers and privi¬ 
leges specified in this chapter, when it shall be solvent un¬ 
der this chapter and shall have complied with the following 
requirements: 

(a) Filed with the commissioner a certified copy of its 
charter or articles of association; 

(b) Paid the commissioner a fee of twenty-five dollars; 

(c) Filed with the commissioner a copy of ifs by-laws 
certified to by its secretary; 

(d) Appointed the commissioner its agent for the ser¬ 
vice of process, in any action, suit or proceeding in any 
court of this state, which authority shall continue as long 
as any liability shall remain outstanding in this state; 

(e) Filed a financial statement under oath, in such form 
as the commissioner may require, and have complied with 
other provisions of law applicable to the filing of papers and 
furnishing information by stock companies on application 
for authority to transact the same kind of insurance; 

(f) If organized without the United States, make and 


Application of 
chapter. 


Provisions 
may insert. 


Countersign¬ 
ing and 
delivery. 


Proviso. 


Foreign 
company, 
when ad¬ 
mitted to do 
business. 



158 


STATE OF MICHIGAN. 


Exemption. 


Reinsurance. 


Acts repealed. 


maintain the deposit required of stock insurance companies 
formed without the United States transacting the same kind 
of insurance. 

Upon compliance by any such foreign company with the 
provisions of this section, such company shall be licensed 
and authorized to transact business in this state, subject to 
all the provisions of law relating to information to and ex¬ 
aminations by the commissioner, annual reports, taxes and 
the renewal of licenses applicable to stock insurance com¬ 
panies transacting the same kinds of insurance, except as 
otherwise provided in this chapter. 

(334) Sec. 20. Except as provided herein, or as may be 
hereafter expressly provided in another law of this, state, 
no company organized or admitted to do business in this 
state under this chapter shall be subject to the laws gov¬ 
erning the qualifications of insurance companies for author¬ 
ity to carry on insurance in this state. 

(335) Sec. 21. Any mutual insurance company other 
than life may, by policy, treaty or other agreement, cede to or 
accept from any insurance company or insurer reinsurance 
upon the whole or any part of any risk which reinsurance 
shall be without contingent liability or participation or 
membership unless provided otherwise. No such reinsurance 
shall be effected with any company or insurer disapproved 
by written order of the commissioner filed in his office. 

Added 1921, Act 396. 

Schedules. 

(336) Section 1. The following acts and all amendments 
thereto are hereby repealed: Act one hundred eight, session 
laws of eighteen hundred seventy-one; act sixty-six, public 
acts of nineteen hundred eleven; act two hundred ninety- 
two, public acts of nineteen hundred thirteen; act one hun¬ 
dred ninety-four, public acts of eighteen hundred eighty- 
three; act seventy-seven, session laws of eighteen hundred 
sixty-nine; act one hundred eighty-seven, public acts of nine¬ 
teen hundred seven; act one hundred eighty, public acts of 
nineteen hundred seven; act two hundred thirty-six, public 
acts of nineteen hundred thirteen; act three hundred two, 
public acts of nineteen hundred thirteen; act one hundred 
eighty-three, public acts of nineteen hundred seven; act one 
hundred ninety-three, public acts of nineteen hundred thir¬ 
teen ; act one hundred seventy-nine, public acts of nineteen 
hundred seven; act one hundred eighty-two, public acts of 
nineteen hundred seven; act two hundred fifty-nine, pub¬ 
lic acts of nineteen hundred seven; act eighty-seven, public 
acts of eighteen hundred ninety-seven; act one hundred 
eighty-seven, public acts of eighteen hundred eighty-seven; 
act one hundred twenty-five, public acts of nineteen hundred 
nine; act thirty-seven, public acts of nineteen hundred fif¬ 
teen; act three hundred eighteen, public acts of nineteen 
hundred seven; act two hundred ninety-eight, public acts of 
nineteen hundred seven; act one hundred seventeen, public 



LAWS RELATING TO INSURANCE. 


159 


acts of nineteen hundred seven; act seventy-one, public acts 
of nineteen hundred seven; act one hundred sixty-nine, pub¬ 
lic acts of nineteen hundred thirteen; act one hundred thirty- 
six, public acts of eighteen hundred sixty-nine; act sixty- 
two, public acts of eighteen hundred ninety-five; act one 
hundred fifty-four, public acts of nineteen hundred five; act 
one hundred forty-seven, public acts of nineteen hundred 
fifteen; act sixty-one, public acts of nineteen hundred thir¬ 
teen; act eighty-six, public acts of nineteen hundred fifteen; 
act one hundred eleven, public acts of nineteen hundred 
eleven; act two hundred thirteen, public acts of nineteen 
hundred eleven; act thirty-four, session laws of eighteen 
hundred seventy-three; act one hundred forty-nine, session 
laws, of eighteen hundred seventy-three; act seventy-one, 
public acts of eighteen hundred seventy-nine; act two hun¬ 
dred eighty-five, public acfis of eighteen hundred eighty- 
seven ; act two hundred forty, public acts of eighteen hun¬ 
dred ninety-nine; act one hundred forty-eight, public acts 
of eighteen hundred eighty-one; act one hundred ninety-nine, 
public acts of eighteen hundred ninety-five; act one hundred 
fifty-three, public acts of eighteen hundred ninety-five; act 
one hundred sixty-seven, public acts of eighteen hundred 
ninety-seven; act two hundred ninety-three, public acts of 
nineteen hundred thirteen; act one hundred thirty-six, pub¬ 
lic acts of nineteen hundred fifteen; act two hundred seventy- 
three, public acts of nineteen hundred thirteen; act 
two hundred eighty-five, public acts of nineteen hundred 
thirteen; act eighty-two, session laws of eighteen hundred 
seventy-three; act two hundred sixty-two, public acts of 
eighteen hundred ninety-five; act one hundred forty-eight, 
public acts of nineteen hundred fifteen; act one hundred 
fifty-seven, public acts of eighteen hundred eighty-one; act 
seventy-eight, public acts of eighteen hundred eighty-three; 
act one hundred seventy-six, public acts of nineteen hun¬ 
dred seven; act two, public acts of nineteen hundred nine; 
act thirty-six, public acts of eighteen hundred eighty-three; 
act one hundred twenty-two, public acts of nineteen hundred 
one; act two hundred fifteen, public acts of nineteen hun¬ 
dred eleven; act one hundred thirty-four, public acts of 
eighteen hundred ninety-five; act two hundred five, public 
acts of nineteen hundred three; act one hundred eleven, pub¬ 
lic acts of eighteen hundred eighty-three; act thirty-six, 
public acts of eighteen hundred eighty-one; act six, public 
acts of eighteen hundred eighty-five; act sixteen, public acts 
of nineteen hundred eleven; act seventy-three, public acts 
of eighteen hundred eighty-seven; act two hundred sixty- 
nine, public acts of eighteen hundred eighty-nine; act two 
hundred thirty-seven, public acts of eighteen hundred eighty- 
one; act twelve, public acts of nineteen hundred twelve, 
first extra session; act one hundred eighty-two, public acts 
of nineteen hundred fifteen; act one hundred seventy-seven, 
public acts of nineteen hundred fifteen; act one hundred 
fifty-six, public acts of eighteen hundred ninety-seven; act 



160 


STATE OF MICHIGAN. 


Act repealed 
Jan. 1, 1918. 


Companies 

previously 

incorporated. 


Proviso, 
amendments 
to comply 
with act. 


three hundred seven, public acts of nineteen hundred seven; 
act two hundred sixty-four, public acts of nineteen hundred 
thirteen; act thirty-eight, public acts of nineteen hundred 
fifteen; act seventy-six, public acts of nineteen hundred 
fifteen; act one hundred ninety-nine, public acts of nine¬ 
teen hundred eleven; act one hundred ninety-nine, public 
acts of nineteen hundred seven; act one hundred thirty- 
three, public acts of nineteen hundred nine; act eighty-four, 
public acts of nineteen hundred one; act one hundred twenty- 
four, public acts of nineteen hundred fifteen; act 
eighty-seven, public acts of eighteen hundred ninety-nine; 
act two hundred thirty-three, session laws of eighteen hun¬ 
dred forty-eight; act one hundred thirty-three, public acts 
of nineteen hundred eleven; act two hundred fifty, public 
acts of nineteen hundred eleven; act two hundred seventy- 
eight, public acts of nineteen hundred thirteen; act one hun¬ 
dred seventy-four, public acts of eighteen hundred eighty- 
live; act one hundred fifty-five, session laws of eighteen 
hundred seventy-three; act two hundred sixteen, public acts 
of nineteen hundred eleven; act two hundred fifty-six, public 
acts of eighteen hundred ninety-nine; act one hundred 
twenty-seven, public acts of nineteen hundred eleven; act 
two hundred.eleven, public acts of nineteen hundred thirteen; 
act one hundred twenty-nine, public acts of nineteen hundred 
eleven; act one hundred thirty-two, public acts of nineteen 
hundred eleven; act ninety-five, session laws of eighteen 
hundred seventy-one. 

(337) Sec. 2. All acts and parts of acts inconsistent 
with the provisions of this act are hereby repealed. Act 
number two hundred seventy-seven, public acts of nineteen 
hundred five, as amended, relating to standard fire insur¬ 
ance policy, is hereby repealed from and after January one, 
nineteen hundred eighteen. 

(338) Sec. 3. Any insurance company, association, so¬ 
ciety, partnership, or reciprocal heretofore formed or in¬ 
corporated under any insurance law of this state, whose act 
of incorporation is repealed by this act, shall continue to 
have a corporate existence and shall have all the rights, 
privileges, immunities and limitations, obtained under such 
acts of incorporation, as evidenced by their articles of as¬ 
sociation or articles of agreement, and their by-laws, made 
pursuant to such acts of incorporation, as existing at the 
time this act takes effect: Provided, however, That all 
amendments to such articles of incorporation, and by-laws 
shall be made hereafter in compliance with the provisions 
of this act, and all such companies shall be otherwise gov¬ 
erned by the provisions of this act. All reincorporations of 
such companies, for the purpose of extending their corporate 
existence or for any other purpose shall be made only in 
compliance with this act, and any company, association, so¬ 
ciety, partnership, or reciprocal heretofore incorporated un¬ 
der any insurance law of this state may reincorporate un¬ 
der this act. 


I 



LAWS RELATING TO INSURANCE. 


161 


INDEPENDENT STATUTES RELATING TO 
INSURANCE COMPANIES. 


SURETY COMPANY BONDS AUTHORIZED. 

An Act relative to bonds and other obligations, with surety or sure¬ 
ties, and the acceptance as surety thereon of companies qualified 
to act as such, and the release of such surety, and the safe de¬ 
positing of assets for which such surety may be liable, and to the 
charging by fiduciaries of the expense of procuring sureties, and 
repealing all laws in conflict therewith. 

[Act 266, P. A. 1895.] 

The People of the State of Michigan enact: 

(339) § 9219. Section 1 . Whenever any bond, undertak¬ 
ing, recognizance or other obligation is by the law of the state 
or by the charter, ordinances, rules or regulations of any 
municipality, board, body, organization or public officer, or 
in any judicial or other proceeding required or permitted to 
be made, given, tendered or filed with the surety or sureties 
and whenever the performance of any act, duty or obliga¬ 
tion, or refraining from any act is required or permitted to 
be guaranteed, such bond, undertaking, obligation, recog¬ 
nizance or guaranty, may be executed by a surety company, 
qualified to act as surety or guarantor as hereinafter pro¬ 
vided, and such execution by such company of such bond, 
undertaking, recognizance, obligation or guaranty shall be 
in all respects a full and complete compliance with every re¬ 
quirement of every law, charter, ordinance, rule, regulation 
or order, that such bond, undertaking, obligation or recog¬ 
nizance or guaranty shall be executed by one surety, or by 
one or more sureties, or that such sureties shall be residents 
or householders or freeholders or either or both, or possess 
any other qualifications: Provided, That such sureties com¬ 
panies shall be accepted as surety on any recognizance for the 
appearance of persons charged with crime: Provided further, 
That where any bond is required for the sale of liquors un¬ 
der the laws of this state, such bonds shall not be executed 
by any surety company as herein provided, except by and 
with the consent and approval of the township board, or of 
the board of trustees or of the common council of any village 
or* city, as the case may be, within which said bond is re¬ 
quired to be filed: And provided further, That the bond of 
such surety company shall not be accepted by said township 
board, common council or a board of trustees, unless such 
surety company shall be a corporation of the state of Mich¬ 
igan, organized and existing under the laws of the state of 
Michigan, and with a capital stock of not less than five hun¬ 
dred thousand dollars: Provided, That whenever a majority 


Authorizing 
surety com¬ 
panies to go 
on bonds. 


Proviso, 
bail bonds. 

Further pro¬ 
viso, liquor 
bonds. 


Further pro¬ 
viso, a Michi¬ 
gan corpora¬ 
tion. 


Proviso. 





162 


STATE OF MICHIGAN. 


Further 

proviso. 


Further pro¬ 
viso, service 
on commis¬ 
sioner. 


When it shall 
be lawful to 
accept one 
surety. 


of the qualified electors of any township, village or city, equal 
to a majority of the votes cast for governor at the last general 
election, shall file a petition with the township board of any 
township, board of trustees, council or common council of any 
village or city, protesting against the acceptance of the bonds 
offered by any individual, firm or corporation proposing to 
engage in the sale of intoxicating liquors at retail, it shall 
be unlawful for such township board of such township, board 
of trustees, council or common council of any village or city 
to accept such bonds: And provided further, That such 
bonding company or companies shall not charge more than 
ten dollars per thousand dollars for going on such liquor bond 
or bonds: Provided further, That suits may be commenced 
in the circuit court in any county where the plaintiff resides, 
by declaration or writ, and service shall be made in such cases 
only upon the commissioner of insurance in like manner and 
with like effect as is provided for the service of process upon 
societies, orders or associations organized under the laws of 
any other state, province or territory and doing business in 
this state, and not having its principal office within this 
state and, for the purpose of service of process as herein 
provided, such surety company shall appoint in writing the 
commissioner of insurance, or his successor in office, to be its 
true and lawful attorney. 

Am. 1923, Act 229. 

As to where suits may be brought, see compiler’s section 367; as to service of 
process, see sections 369 and 370. 

This act is complete in itself and constitutional.—Steel v. Aud. Gen., 111/381. 
The title of Act 321, P. A. 1907, was sufficient to comply with the constitutional 
requirement that the object be expressed in the title.—Taylor v. Davarn, 191 / 243. 
It does not authorize the taxation as costs of a charge paid to a surety company 
for becoming security on an appeal bond, where the party does not occupy the 
relation of fiduciary.—Somerville v. Wabash Railroad Co., Ill / 51. This section 
was evidently designed to permit the substitution of one surety, in case it 
should be a corporation organized under this act, in place of two. required by 
other provisions of law; and where no act of acceptance is required, but the 
giving of such bond is required by law, such bond, as executed, is declared 
sufficient.—Schmitt v. Clinton Com. Council, 111 /102. A bond for indemnity 
against loss through the default of an employe makes the surety an insurer in all 
essential particulars and subject to the same rules as fire and life companies.— 
Crystal Ice Co. v. United Surety Co., 159 / 102. Service of process on the com¬ 
missioner of insurance is insufficient to confer jurisdiction over a foreign insurance 
company, without evidence of the due appointment in writing of the insurance 
commissioner to receive service of process.—Wells v. U. S. Fidelity & Guaranty 
Co., 160/213. In garnishment proceedings against a Michigan bonding and 
surety company, the insurance commissioner having been duly appointed by 
said company to receive service of process, service upon the secretary of the 
company instead of upon the insurance commissioner was void.—Druekc-Lyncli 
Co. v. Mich. Bonding & Surety Co., 204 / 180. 

A dispute as to the receipt of a check by a township treasurer from his predeces¬ 
sor presented a question for the jury.—National Surety Co. v. Grant, 177 / 348. 
A contract of indemnity is to be interpreted so as to cover any loss or liability 
which the parties reasonably appear to have intended it to include, but not such 
as are expressly excluded or of such a character that it can reasonably be inferred 
that they were not intended to be within the agreement.—Fidelity & Deposit 
Co. of Maryland v. Hibbler, 177 / 490. Plaintiff brought a civil-damage action 
in Ionia county where she resided, and joined three saloon keepers, residents 
of other counties, as parties defendant. Held, that the action was properly com¬ 
menced in the county of plaintiff’s residence.—Taylor v. Davarn, 191 / 243. 

(340) § 9220. Sec. 2. In any cause, matter or proceed¬ 

ing where, by the laws of this state, the giving of any bond 
is required or permitted, and more than one surety is re¬ 
quired, it shall be lawful for the court, officer or person who 
is authorized or required by law to approve and accept such 
bond, to accept and approve a bond with but one surety, pro- 




LAWS RELATING TO INSURANCE. 


163 


vidod the surety thereto is a corporation qualified to act as 
surety or guarantor as hereinafter provided. 


The provisions of this section are permissive merely and do not prohibit a 
i i G , counci l £ roin refusing to approve a liquor bond, where they have no 
111 /102 ° f thC S0lvency of the surety.—Schmitt v. Clinton Com. Council, 


(341) § 9221. Sec. 3. That such company, to be quali- Qualifications 

fied to so act as surety or guarantor, must be authorized compand 
under the laws of the state where incorporated and under 
its charter to guarantee the fidelity of persons holding places 
of public or private trust, and to guarantee the performance 
of contracts other than insurance policies, and to execute 
bonds and undertakings required or permitted in actions or 
proceedings or by law allowed ; must comply with the re¬ 
quirements of the laws of this state applicable to such com- 
pany, in doing business therein; must have good available 
assets in excess of its liabilities, which said liabilities, how¬ 
ever, shall for the purposes of this act, be taken to be its 
capital stock, its outstanding debts, and a premium reserve 
at the rate of fifty per centum of the annual premium on all 
outstanding obligations in force; must file with the insurance Certified copy 
commissioner a certified copy of its charter or act of incor- JJe fiiecf with 
poration, a written application to be authorized to do busi- insurance 
ness under this act and a statement signed and sworn to by commissloner - 
at least two of its officers, stating the amount of its paid up 
cash capital, particularizing each item of investment, the 
amount of premium on existing bonds upon which it is 
surety, the amount of liability for unearned portion of such 
premiums, estimated at the rate of fifty per centum of the 
annual premium on all outstanding obligations; stating also 
the amount of its outstanding debts of all kinds, and such 
further statement similarly verified as may be by the laws of 
this state required of such company in transacting business 
therein. And if such company be organized under the laws Domestic 
of this state, it must have an unimpaired, safely invested cap- capitab'how 
ital of at least two hundred thousand dollars; must have at invested, 
least one hundred thousand dollars invested in securities cre¬ 
ated under or by the laws of the United States, or of this 
state, the value of which shall be at or above par and shall 
be deposited with or held by the state treasurer of this state 
in trust for the benefit of the holders of the obligations of 
such company; and if such company be organized under the Foreign 
laws of any other state than this state, it must have a fully qXements? 
paid up and safely invested and unimpaired capital of at 
least two hundred and fifty thousand dollars, and have at 
least two hundred thousand dollars in good, dividend paying 
or interest bearing stock or securities created under or by 
virtue of the laws of the United States or of the state where 
it is incorporated, or of good, solvent, dividend paying cor¬ 
porations, or in first mortgages on unincumbered real estate 
worth at least double the amount loaned thereon, which said 
stocks, securities or mortgages shall be at or above par in 
value and be deposited with or held by the state officer or 



164 


STATE OF MICHIGAN. 


Attorney for 
service of 
process. 


Insurance 
commissioner 
to issue cer¬ 
tificates. 


Company to 
file statement 
annually. 


officers of not more than two states wherein the company is 
authorized to do business in trust, for the benefit of the 
holders of the obligations of such company; must appoint an 
attorney in this state on whom process of law can be served, 
and file in the office of the insurance commissioner a written 
statement duly signed and sealed, certifying such appoint¬ 
ment and which shall continue until another attorney is sub¬ 
stituted. 

Held sufficiently entitled to indicate the purpose of the statute, which is not 
to change the jurisdiction of the courts, but to impose conditions upon foreign 
surety companies doing business in Michigan.—People v. Fidelity & Deposit Co., 
163 / 95. 

(842) § 9222. Sec. 4. That upon production of proof 
to the insurance commissioner by such company that it 
possesses the qualifications by this act required and has com¬ 
plied therewith, he shall issue to such company and such of 
its agents in this state, his certificate that such company is 
for the ensuing year authorized to become and be accepted as 
sole surety on all bonds, undertakings and obligations, re¬ 
quired or permitted by law, or by the charter, ordinances, 
rules and regulations of any municipality, board, body, or¬ 
ganization or public officer, which said certificate shall be 
conclusive proof of the solvency and credit of such company 
for all purposes and of its right to be so accepted as such 
sole surety and its sufficiency as such. 

The provision that the certificate shall be conclusive proof of solvency and 
credit does not prechide the proper board or officer from exercising discretion. 
—Schmitt v. Clinton Com. Council, 111/102. The filing of a bond by an assignee 
for the benefit of creditors signed by a foreign corporation as surety without 
proof of authority of the company to become surety on the bond will not 
qualify the assignee to sue for assets of his assignor.—McCuaig v. City Sav. Bk., 
Ill / 356. 

(843) § 9223. Sec. 5. That such company shall also an¬ 
nually, during the month of January, file with the insurance 
commissioner a statement similar to that hereinbefore in 
section two of this act provided for, made up to the thirty- 
first day of December next preceding, together with a certifi¬ 
cate from the officer with whom the deposit in section two 
of this act specified is required to be made, describing such 
securities so deposited and the manner in which they are 
held by him, and stating that he is satisfied that such securi¬ 
ties are fully worth the amount so required by said section 
two of this act to be deposited and also furnish said insur¬ 
ance commissioner with such further statement as may be 
by the laws of this state required of such company; and upon 
the filing of such annual statement and the proof of such 
facts, said insurance commissioner shall thereafter issue to 
such company and each of its agents in this state his certifi¬ 
cate that such company is for the ensuing year authorized 
as in section three of this act provided, which said certificate 
shall be proof as in such section specified. 


The references to section 2 in this section are undoubtedly in error; section 
3 was evidently intended. 



LAWS RELATING TO INSURANCE. 


165 


(344) § 9224. Sec. 6. That it shall be lawful for any 
party of whom a bond or undertaking is required, and whose 
surety thereon is such a company, to agree with such surety, 
for the deposit of any and all moneys and other depositable 
assets for which such surety is or may be held responsible, 
with a trust company, safe deposit company or bank, au¬ 
thorized by Iuav to transact business as such in this state, 
if such deposit is otherwise proper, in such manner as to 
prevent the withdrawal of such moneys and assets or any 
part thereof, except with the written consent of such surety, 
or an order of the court made on such notice to them as such 
court may direct. 

This section has no application to the state treasurer’s bond. That bond falls 
within the exception of this section.—Steel v. Aud. Gen., 111/381. 

(345) § 9225. Sec. 7. Such surety or the representa¬ 
tive of any such surety upon the bond of any trustee, con¬ 
servator, guardian, assignee, receiver, executor or adminis¬ 
trator or other fiduciary may apply by petition to the court 
wherein such bond is filed or which may have jurisdiction 
of such trustee, conservator, guardian, assignee, receiver, 
executor or administrator, or to a judge of said court pray¬ 
ing to be relieved from such liability as such surety, for the 
acts or omissions of the trustee, conservator, guardians, 
assignee, receiver, executor or administrator or other fiduci¬ 
ary which may occur after the date of the order relieving 
such surety, to be granted as herein provided for, and to re¬ 
quire such trustee, conservator, guardian, assignee, receiver, 
executor or administrator, or other fiduciary, to show cause 
why he should not account, and such surety be relieved from 
such future liability as aforesaid, and such principal be re¬ 
quired to give a new bond, and thereupon, upon the filing of 
such petition the court in term time, or a judge thereof in 
vacation, shall issue an order to show cause, returnable at 
such time and place and to be served in such manner as such 
court or judge may direct, and may restrain such trustee, 
conservator, guardian, assignee, receiver, executor or admin¬ 
istrator or other fiduciary from acting, except in such man¬ 
ner as it may direct to preserve the trust estate; and upon 
the return of such order to show cause, if the principal in the 
bond account in due form of law and file a new bond, duly 
approved, then such court or judge may make an order re¬ 
leasing such surety, filing the petition as aforesaid, from lia¬ 
bility upon the bond for any subsequent acts or defaults of 
such principal, and in default of such principal thus account¬ 
ing and filing such new bond, such court or judge must make 
an order, directing such trustee, conservator, guardian, as¬ 
signee, receiver, executor or administrator or other fiduciary, 
to account in due form of law, and that if the trust fund or 
estate shall be satisfactorily accounted for and delivered or 
properly secured, such surety shall be discharged from any 
and all further liability as such, for the subsequent acts or 
omissions of the trustee, conservator, guardian, assignee, 


When lawful 
to require 
deposits to 
be made. 


When sureties 
may be re¬ 
lieved from 
liability. 




166 


STATE OF MICHIGAN. 


May include 
as lawful 
expenses. 


No company 
signing bond 
shall deny its 
corporate 
power. 


Annual 

report. 


Specific tax. 


Proviso, 
return, etc., 
premiums. 


receiver, executor or administrator, or other fiduciary, after 
the date of such surety being so relieved and discharged, and 
discharging such trustee, conservator, assignee, receiver, ex¬ 
ecutor or administrator, or other fiduciary. 

(346) § 9226. Sec. 8. That any receiver, assignee, 
guardian, conservator, trustee, executor or administrator, or 
other fiduciary, required by law or the order of any court or 
judge to give a bond as such, may include, as a part of the 
lawful expense of executing his trust, such reasonable sum 
paid a company authorized under this act so to do, for becom¬ 
ing his surety on such bond, as may be allowed by the court 
in which he is required to account, or a judge thereof, not 
exceeding, however, one per centum per annum of the amount 
of such bond; and in all actions or proceedings the party 
entitled to recover costs or disbursements may include therein 
such reasonable sum as may have been paid such com¬ 
pany for executing or guaranteeing any bond, undertaking, 
recognizance or other obligation therein. 

This act does not permit the recovery as taxable costs of the cost of a surety 
bond where the party does not occupy the relation of a fiduciary.—Somerville v. 
Wabash R. R. Co., ill / 51 . 

(347) § 9227. Sec. 9. That no company, having signed 
such a bond, undertaking or obligation, shall be permitted to 
deny its corporate power to execute such instrument or incur 
such liability in any proceedings to enforce liability there¬ 
under. 

Sec. 10 repeals conflicting acts. 

(348) § 9229. Sec. 11. Every such corporation shall, as 
a condition precedent to the renewal of an annual certificate 
by the commissioner of insurance, make and file in the office 
of the state treasurer annually, in the month of January of 
each year, on oath or affirmation a statement of the number 
of guarantees, bonds, covenants or agreements, which it has 
signed and issued, and the gross amount of premiums re¬ 
ceived or secured thereon during the year then terminated, 
and shall pay into the state treasury a specific tax of two per 
cent on the gross amount of all premiums received in money 
or securities in this state during the said year, and in ascer¬ 
taining the gross amount of all premiums received or secured, 
the return premiums on cancelled guarantees, bonds, cove¬ 
nants or agreements shall be deducted, and shall not be in¬ 
cluded in the term “gross amount of premiums,” which said 
specific tax may be recovered from any corporation neglect¬ 
ing or refusing to pay the same, in any court at the suit of 
this state, and it shall be the duty of the state treasurer to 
give his receipt for all moneys paid into the state treasury 
under the provisions of this act: Provided, however, That 
when, by the statutes or rulings of the insurance department 
of any state, a tax is laid or levied upon the amount of the 
gross receipts of premiums received, upon any company or¬ 
ganized under the laws of this state, and doing business in 
such state, which amount of gross receipts shall include re- 



LAWS RELATING TO INSURANCE. 


167 


turn premiums, then the corporations from that state doing 
business in this state under this act, shall be taxed upon 
the amount of gross receipts for premiums, without 
excluding the cancellation or return premiums: Provided Further 
further, That all companies transacting any reinsurance provlso * 
business in any manner shall pay the above tax upon the 
original premium received by the reinsured company on that 
portion of the risk reinsured: Provided further, Said rein- Further 
stiring company may deduct front such premium that por- deductions, 
lion of such premiums upon which the reinsured company 
has paid the above two per cent tax. 


WHOLE FAMILY PROTECTION. 

An Act to provide whole family protection for members of fraternal 
beneficiary societies, permitting the payment of death or annuity 
benefits upon the lives of children between the ages of two and 
eighteen years at next birthday, for whose support and main¬ 
tenance a member of such society is responsible. 

[Act 160, P. A. 1917.] 

The People of the State of Michigan enact: 

(349) Section 1. Any fraternal benefit society author- Benefits 
ized to do business in this state and operating on the lodge children' 68 ° f 
plan, may provide in its constitution and by-laws, in addi- 

tion to other benefits provided for therein, for the payment 
of death or annuity benefits upon the lives of children 
between the ages of two and eighteen years at next birthday, 
for whose support and maintenance a member of such society 
is responsible. Any such society may at its option, organize 
and operate branches for such children, and membership 
in local lodges and initiation therein shall not be required 
of such children, nor shall they have any voice in the man¬ 
agement of the society. The total benefits payable as above Limited, 
provided shall in no case exceed the following amounts at 
ages at next birthday at time of death, respectively, as fol¬ 
lows : Two, thirty-four dollars; three, forty dollars; four 
forty-eight dollars; five, fifty-eight dollars; six, one hundred 
forty dollars; seven, one hundred sixty-eight dollars; eight, 
two hundred dollars; nine, two hundred forty dollars; ten, 
three hundred dollars; eleven, three hundred eighty dollars; 
twelve, four hundred sixty dollars; thirteen to fifteen, five 
hundred twenty dollars; and sixteen to eighteen years, 
where not otherwise authorized by law, six hundred dollars. 

(350) Sec. 2. A T o benefit certificate as to any child shall Condmon s to 
take effect until after medical examination or inspection issuance 0 ! 
by a licensed medical practitioner, in accordance with the certificate, 
laws of the society, nor shall any such benefit certificate be 

issued unless the society shall simultaneously put in force 





168 


STATE OF MICHIGAN. 


Death benefit 
contributions, 
how based. 


Proviso. 


Further 

proviso. 


Reserve 

required. 


Proviso, sur¬ 
render, etc., 
of certifi¬ 
cates. 


Proviso, 

reduction. 


Nomination 
of bene¬ 
ficiary. 


Separate 

financial 

statement. 


General fund 
expense. 


at least live hundred such certificates, on each of which at 
least one assessment has been paid, nor where the number 
of lives represented by such certificates falls below five hun¬ 
dred. The death benefit contributions to be made upon such 
certificate shall be based upon the Standard Industrial Mor¬ 
tality Table or the English Life Table number six, and a 
rate of interest not greater than four per cent per annum, 
or upon a higher standard: Provided, That contributions 
may be waived or returns may be made from any surplus held 
in excess of reserve and other liabilities, as provided in the 
by-laws: And provided further, That extra contributions 
shall be made if the reserves hereafter provided for become 
impaired. 

(351) Sec. 3. Any society entering into such insurance 
agreements shall maintain on all such contracts the reserve 
required by the standard of mortality and interest adopted 
by the society for computing contributions, as provided in 
section two, and the funds representing the benefit contribu¬ 
tions and all accretions thereon shall be kept as separate 
and distinct funds, independent of the other funds of the 
society, and shall not be liable for nor used for the pay¬ 
ment of the debts and obligations of the society other than 
the benefits herein authorized: Provided, That a society 
may provide that when a child reaches the minimum age for 
initiation into membership in such society, any benefit cer¬ 
tificate issued hereunder may be surrendered for cancella¬ 
tion and exchange for any other form of certificate issued 
by the society: Provided, That such surrender will not reduce 
the number of lives insured in the branch below five hundred, 
and upon the issuance of such new certificate any reserve 
upon the original certificate herein provided for shall be 
transferred to the credit of the new certificate. Neither the 
person who originally made application for benefits on 
account of such child, nor the beneficiary named in such 
original certificate, nor the person who paid the contribu¬ 
tions, shall have any vested right in such new certificate, the 
free nomination of a beneficiary under the new certificate 
being left to the child so admitted to benefit membership. 

(352) Sec. 4. An entirely separate financial statement 
of the business transactions and of assets and liabilities 
arising therefrom shall be made in its annual report to the 
insurance commissioner by any society availing itself of the 
provisions hereof. The separation of assets, funds and lia¬ 
bilities required hereby shall not be terminated, rescinded 
or modified, nor shall the funds be diverted for any use other 
than as specified in section three, as long as any certificates 
issued hereunder remain in force, and this requirement shall 
be recognized and enforced in any liquidation, reinsurance, 
merger or other change in the condition of the status of the 
society. 

(353) Sec. 5. Any society shall have the right to pro¬ 
vide in its laws and the certificate issued hereunder for 
specified payments on account of the expense of general fund, 





LAWS RELATING TO INSURANCE. 


169 


which payments shall or shall not be mingled with the general 
fund of the society as its constitution and by-laws may pro¬ 
vide. 

(354) Sec. 6 . In the event of the termination of mem¬ 
bership in the society by the person responsible for the 
support of any child, on whose account a certificate may have 
been issued, as provided herein, the certificate may be con¬ 
tinued for the benefit of the estate of the child, provided the 
contributions are continued, or for the benefit of any other 
person responsible for the support and maintenance of such 
child, who shall assume the payment of the required con¬ 
tributions. 


LIMIT OF SINGLE HAZARD OF MUTUAL FIRE, ETC., COM¬ 
PANIES. 

An Act to prohibit any mutual fire, cyclone, automobile or hail¬ 
storm insurance company doing an insurance business in Michi¬ 
gan taking or assuming a greater risk or liability on a single 
hazard than one-fifth of one per centum of the total insurance in 
force in said company unless the excess insurance or liability 
over and above said one-fifth of one per centum be at once rein¬ 
sured in some other insurance or reinsurance company doing 
business in and under the laws of the state; authorizing and mak¬ 
ing it legal for any mutual fire, cyclone, automobile or hailstorm 
insurance company organized under the laws of and doing busi¬ 
ness in the state to reinsure with and receive reinsurance from 
any other company authorized to do an insurance business in the 
state on any and all property situate within the state; defining 
what shall constitute a single hazard; fixing a penalty for the vio¬ 
lation of this act; and amending all acts or parts of acts in con¬ 
flict herewith. 

[Act 388, P. A. 1921.] 

The People of the State of Michigan enact: 

(355) Section 1. No mutual fire, cyclone, automobile or 
hail-storm insurance company, organized under the laws of 
or doing business in this state, shall carry an insurance or 
assume a liability on any single hazard within the state 
amounting to more than one-fifth of one per centum of the 
total amount of insurance carried and in force in such com¬ 
pany, unless the excess insurance over and above an amount 
equal to one-fifth of one per centum of the total insurance in 
force be reinsured in some other insurance or reinsuring com¬ 
pany doing business in the state. 

See secs. 267-89. 

(356) Sec. 2. Any mutual fire, cyclone, automobile or 
hailstorm insurance company organized under the laws of and 
doing business in the state may reinsure any of its risks or 
any part thereof in, and receive like reinsurance from, any 
other mutual company doing business in the state. 


Continuation 
of certificate. 


Limit of in¬ 
surance 
company may 
assume. 


Reinsurance 
from other 
mutual 
company. 




170 


STATE OF MICHIGAN. 


Single hazard 
defined. 


Misdemeanor. 


Penalty. 


Method of 
authorization. 


Mainten¬ 

ance. 


Fire depart¬ 
ment. 


Petition. 


(357) Sec. 3. A single hazard or risk within the meaning 
of this act shall be defined as any building and its contents 
or buildings and contents in such close proximity that the 
burning of one would necessitate the burning of or damage 
to the other. 

(358) Sec. 4. Any violation of this act by any such com¬ 
pany or the officer of any such company shall be a misde¬ 
meanor and punishable by a fine not to exceed one hundred 
dollars for each offense. 

Sec. 5 repeals contravening acts. 


An Act to provide fire protection for townships; to authorize the 
purchase of fire extinguishing apparatus and equipment and the 
maintenance and operation thereof. 

[Act 28, P. A. 1923.] 

The People of the State of Michigan enact: 

(359) Section 1 . Hereafter any township, at the annual 
meeting thereof, may by a vote of two-thirds of those voting 
thereon, authorize and vote a sum not exceeding four thou¬ 
sand dollars, for the purpose of providing fire protection for 
such township by the purchase of fire extinguishing apparatus 
and equipment and the housing thereof, and jnay by a 
majority vote at any annual meeting vote a further sum, 
not exceeding six hundred dollars, for any one year, for the 
maintenance of such fire extinguishing apparatus and equip¬ 
ment and for the purpose of paying for the care and operation 
thereof. 

(360) Sec. 2. The township board of any township where 
appropriations have been made as herein provided, may 
organize a fire department within said township, whose duty 
it shall be to take charge of and operate said apparatus and 
equipment for a compensation and under regulations to be 
established by said board, or the township board of any 
township having within its boundaries an incorporated village 
or city which maintains a fire department therein, may con¬ 
tract with the common council or other representative body of 
the city or village for the care, maintenance and operation of 
said apparatus and equipment by the fire department of such 
village or city, upon such terms as may be agreed upon. 

(361) Sec. 3. No township shall appropriate money for 
the purchase and housing of such fire extinguishing apparatus 
and equipment except upon the petition of at least one-third 
of the resident taxpayers thereof, which petition shall be filed 
with the township board at least thirty days before the time 
fixed for the annual township election and it shall be the 
duty of the township clerk to include the proposition to be 
voted upon in the notice of annual election, and to prepare 
the ballots therefor. 




LAWS RELATING TO INSURANCE. 


171 


APPROVAL OF SPRINKLER HEADS. 


An Act to provide for the approval of sprinkler heads, air valves and 
other devices; to create a commission for such purpose, and to 
define the powers and duties thereof; to prevent discrimination 
by insurance companies against insurers of buildings equipped 
with the approved type of sprinkler heads, air valves or other de¬ 
vices, and to provide penalties for the violation hereof. 

[Act 8, (1st ex. sess.), P. A. 1921.] 

The People of the State of Michigan enact: 


( 362 ) Section 3. A commission is hereby created for the Commission 
approval of sprinkler heads, air valves and other devices to i^comvo7e° 
be used within this state, which commission shall be com- etc. 
posed of the state insurance commissioner, the dean of the 
engineering department of the university of Michigan and the 

dean of the engineering department of the Michigan agricul¬ 
tural college. It shall be the duty of said commission to hold 
meetings at such times and places as a majority of the com¬ 
mission may direct, and to examine and test makes or types 
of sprinkler heads, air valves, and any other device or instru¬ 
ments, containers, apparatus or parts of same to be used for 
the extinguishment of or prevention of fires, submitted to it 
for approval. 

(363) Sec. 2. Any two members of the said commission Quorum, 
shall constitute a quorum for the transaction of business. 

Said commission may adopt rules and regulations governing 
its proceedings, and shall cause proper notice to be given of 
the time and place of meetings held thereby. Members of the 
commission shall be entitled to their expenses incurred while 
traveling in the performance of the duties hereby imposed. 

Such expenses shall be paid out of the state treasury in the 
same manner as are the expenses of other state officers and 
employes. 

(364) Sec. 3. Any make or type of sprinkler head, air sprinkler 
valve or any other device or instrument submitted to the 5Sw listed ’ 
said commission, and approved thereby, for the prevention of ° W ' S ° C ’ 
or extinguishing of fire, shall be properly listed in the office 

of the commissioner of insurance, and shall be by the said 
commission certified as a “standard sprinkler head,” “stand¬ 
ard air value,” or as a standard device or instrument for the 
extinguishment of or prevention of fire. Any person falsely 
representing or pretending that any type or make of sprinkler 
head, air valve or any other device or instrument has been 
approved by the said commission shall be deemed to be 
guilty of a misdemeanor and on conviction thereof shall be 
liable to imprisonment in the county jail for not more than 
six months, or to a fine of not more than three hundred 
dollars, or to both such fine and imprisonment, in the discre¬ 
tion of the court. 

(365) Sec. 4. Any person, firm, or corporation submit- Submission 
ting a sprinkler head, air valve or any other device or instru- fee - 
merit to the commission for the approval thereof shall pay, at 



172 


STATE OF MICHIGAN. 


When 

approved. 


When 
unequal to 
standard of 
sample. 


Unlawful 
discrimina¬ 
tion, what 
deemed. 


Penalty. 


Actions, 
where com¬ 
menced and 
tried. 


Service upon 

corporation, 

etc. 


the time of such submission, a fee of one hundred dollars, 
which fee shall be at once deposited by the commission in the 
state treasury. In case the make or type of sprinkler head or 
other articles mentioned in this act so submitted is approved 
by the commission, a bond in the penal sum of ten thousand 
dollars shall be executed to the people of the state of Michi¬ 
gan with such surety or sureties as may be approved by the 
insurance commissioner, conditioned that all sprinkler heads 
or other articles manufactured or sold within the state shall 
be of the same standard or quality as is the sample sub¬ 
mitted for examination and testing. In the event that any 
sprinkler head or other article mentioned in this act of such 
type or make manufactured or sold by the person, firm or 
corporation executing such bond, shall be unequal to the 
standard of the sample, any person or persons injured there¬ 
by may bring action in any court of competent jurisdiction, 
on said bond, to recover any and all damages that may have 
been sustained. 

(366) Sec. 5. Any insurance company that shall grant 
any preferential rate of insurance to any owner or insurer 
of a building equipped with any specific type of sprinkler 
head, air valve or any other device or instrument because of 
such equipment, and who shall refuse to grant the same rate 
to any owner or insurer of any building equipped with any 
type or make of standard sprinkler head, air valve or any 
other device or instrument, approved by the said commission, 
is hereby declared to be guilty of unlawful discrimination. 
Any insurance company so offending shall be liable to a pen¬ 
alty of one thousand dollars for each offense. 


LEGAL PROCEEDINGS. 

ACTIONS. 

[Extract from sec. 1, chap, x, Act 314, P. A. 1915.] 

(367) § 12340. Section 1. Actions shall be commenced 
and tried in the proper county as follows: 

****** 

4. Suits may be commenced against foreign and domestic 
insurance companies, fraternal co-operative and mutual bene¬ 
fit associations, having for their object insurance against fire, 
death, sickness, accident, or any form or risk whatever; and 
against foreign and domestic surety and bonding companies, 
in the circuit court of any county in this state, in which the 
plaintiff resides, and in which such company is authorized to 
issue policies, or take risks. 

SERVICE OF PROCESS. 

[Extracts from chap, xiii, Act 314, P. A. 1915.] 

(368) § 12432. Sec. 29. Process issued from any court 
of record against a corporation, partnership association or 




LAWS RELATING TO INSURANCE. 


173 


unincorporated voluntary association, may be served upon 
any officer, director, trustee or agent thereof, or by leaving 
same during regular office hours at the office of such corpora¬ 
tion, partnership association or unincorporated voluntary 
association, with any person in charge thereof. Except as 
otherwise provided in this act, all general or special laws 
relating to the service of process upon corporations are 
hereby repealed. 

(369) § 12436. Sec. 33. In all cases of domestic or 
foreign insurance companies, fraternal, co-operative and mu¬ 
tual beneficiary societies, orders or associations, and in all 
other cases where it is required by law that any company, 
society, order or association, shall appoint in writing the 
commissioner of insurance, the secretary of state, or any 
other officer of this state, as their agent or attorney, upon 
whom all legal process in any action or proceeding may 
be served, if such appointment shall have been made, ser¬ 
vice of process shall be made upon such officer. In cases 
against fire and marine insurance companies service of pro¬ 
cess may be made in the manner herein provided or in any 
other manner permitted by law. 

(370) § 12437. Sec. 34. In all cases where process is 
served upon the commissioner of insurance, secretary of 
state, or any other state officer as such agent, such service 
shall be made in duplicate upon such officer, or his deputy, 
or in their absence, upon the person in charge of his office; 
and one of the duplicate copies so served shall forthwith be 
forwarded by registered mail, postage prepaid, and directed 
to the secretary or corresponding officer of the defendant. 

LEVY OF ATTACHMENT OR EXECUTION UPON CORPORATE 

SHARES. 

[Extracts from chap, xxiii, Act 314, P. A. 1915.] 

(371) § 12873. Sec. 58. Any share or interest of any 
stockholder in any corporation, that is or may be incorpor¬ 
ated under the authority of any law of this state, unless 
expressly exempted by law, may be attached or taken in 
execution and sold in the manner hereinafter provided. 

(372) § 12874. Sec. 59. The officer of any company who 
is appointed to keep a record or account of the shares or 
interest of the stockholders therein or in whose office there 
is required to be kept any list or statement showing the 
stockholders of such corporation and the number of shares 
held by each or their interest therein, shall upon exhibiting 
to him the attachment or execution be bound to give the 
officer a certificate of the number of shares or amount of 
the interest held by the defendant named in such attach¬ 
ment or the judgment debtor. 

(373) § 12875. Sec. 60. Whenever any corporate shares 
of stock shall be attached or taken in execution, the officer 
shall leave a copy of the attachment or execution certified by 


Service upon 
insurance 
companies, 
etc. 


Service in 
duplicate. 


How taken. 


Certificate of 
shares to be 
furnished. 


Copy of exe¬ 
cution, etc., 
to be left with 
clerk, etc. 



174 


STATE OF MICHIGAN. 


Restraint of 
transfer of 
stock. 


Purchaser of 
shares en¬ 
titled to 
certificate. 


Dividends. 


Provisions 

governing 

proceedings. 


Proviso, 

municipal 

corporations. 


Proviso, 
foreign cor¬ 
porations ; 
neglect, etc., 
to file 
disclosure. 


him with the clerk, treasurer, cashier, or agent of the cor¬ 
poration if there be any such officer, and if not then with 
any officer or person who has, at the time, the custody of the 
books and papers of the corporation within this state. No 
attachment or levy upon shares of stock for which a certifi¬ 
cate is outstanding, shall be valid until such certificate be 
actually seized by the officer making the attachment or levy, 
or be surrendered to the corporation which issued it, or its 
transfer by the holder be enjoined, or restrained. 

(374) § 12876. Sec. 61. Any court of law or equity 
from which any attachment or execution may have issued, 
shall have full power and authority upon motion, and without 
notice, to make an order restraining the transfer of any 
such shares of stock, and upon the service of a certified copy 
of such order, the same shall be as effectual for all purposes 
as though it were an injunction issued by a court of equity. 
This section shall not be construed to in any way abrogate 
or limit the jurisdiction of courts of equity as heretofore 
existing. 

(375) § 12877. Sec. 62. A copy of the execution and 
the return thereon, certified by the officer executing the same, 
shall, within fourteen days after the sale be left with the offi¬ 
cer of the company whose duty it may be to keep a record 
of the transfer of shares; and the purchaser shall thereupon 
be entitled to a certificate or certificates of the shares bought 
by him, upon paying the fees therefor, and for recording the 
transfer. 

(376) § 12878. Sec. 63. If the shares or interest of the 
judgment debtor shall have been attached in the suit in 
which the execution issued, the purchaser shall be entitled 
to all the dividends which shall have accrued after the levy¬ 
ing of the attachment. 

GARNISHMENT OF CORPORATIONS. 

[Extract from chap xxviii, Act 314, P. A. 1915.] 

(377) § 13167. Sec. 46. All corporations of whatso¬ 
ever nature, the state of Michigan and every county therein, 
may be served and proceeded against as garnishees in the 
same manner and with like effect as individuals under the 
provisions of this chapter and the rules of law relative to 
proceedings against corporations: Provided, That when a 
municipal corporation, the state of Michigan, or any county 
therein, is proceeded against as provided for in this chapter, 
judgment shall have been obtained in a court of competent 
jurisdiction by the plaintiff against the principal defendant 
before garnishment proceedings shall be commenced against 
such municipal corporation, the state of Michigan or any 
county therein: Provided further, That in all cases of for¬ 
eign corporations, if the officer or agent served shall neglect 
or refuse to file disclosure to said writ, as hereinbefore in this 
chapter provided, the default of said foreign corporation may 
be entered as in other cases, and upon entry of judgment 



LAWS RELATING TO INSURANCE. 


175 


against tli$ principal defendant, judgment may be entered 
in said garnishee proceedings against said foreign corpora¬ 
tion for the amount thereof, including costs: Provided fur¬ 
ther, That no judgment on default shall be rendered against 
said foreign corporation until the expiration of sixty days 
alter the entry of judgment against the principal defendant, 
and the plaintiff shall within twenty days after judgment 
against the principal defendant, serve notice by mail on the 
foreign corporation at its home office that judgment had been 
obtained against the principal defendant; and that at the 
expiration of sixty days from the date of said judgment ap¬ 
plication would be made for judgment against it, as herein¬ 
before provided. Said notice shall' be substantially as fol¬ 
lows : 

In the circuit court for the county of. 

., plaintiff, 

vs. 

., defendant. 

.., garnishee defendant. 

To said garnishee defendant: 

Take notice, that on the . day of . 

Anno Domini.judgment for the sum of 

. dollars including costs, was entered in said 

court against the above named principal defendant, and at 
the expiration of sixty days from the entry of said judg¬ 
ment, application will be made to said court for the entry of 
judgment against you as garnishee defendant in said cause. 

Yours, etc., 


Plaintiff’s Attorney. 

Am. 1919, Act 233. 

[Extract from chap. Ixxvi, Act 314, P. A. 1915.] 

(378) § 14390. Sec. 30. All corporations of whatso¬ 
ever nature, whether foreign, domestic, municipal or other¬ 
wise, and the state of Michigan, may be proceeded against as 
garnishees in the same manner and with like effect as indi¬ 
viduals under the provisions of this chapter, and the rules 
of law regulating proceedings against corporations and the 
provisions of law regulating the service of summons from 
justice court upon such corporations in other cases, shall be 
applicable to the service of summons in garnishment cases, 
and such service may be made in the same or any adjoining 
county. 

Am. Id. 

(379) § 14391. Sec. 31. It shall be the duty of the 
officer or person so served, or the proper officer of such cor¬ 
poration having knowledge of the facts, to appear before the 
justice at the return day of the summons arid answer there¬ 
to, or to answer at his option in writing, verified by his oath 
before some person authorized to administer oaths and trans¬ 
mit the same by mail or otherwise to the justice issuing said 


Judgment on 
default. 

Proviso, 
notice by- 
plaintiff. 


Form of 
notice. 


Service of 
summons. 


Duty of 
officer served, 
etc. 












176 


STATE OF MICHIGAN. 


When cor¬ 
poration 
deemed 
indebted to 
defendant. 


Judgment. 


Disclosure, 
on cause 
shown. 


When 

garnishment 

adjourned. 


No summons 
until 

judgment 

rendered. 


Proviso. 


Appeal. 


summons, on or before the return day thereof, which shall 
be deemed a sufficient compliance with such summons, and 
all proceedings thereafter shall be the same as in garnish¬ 
ment cases against individuals. 

(380) § 14392. Sec. 32. If said corporation shall not 
so appear or so answer, if a judgment shall have been ob¬ 
tained against said principal defendant, and the time for 
taking an appeal therefrom shall have expired, and if no ap¬ 
peal shall have been taken, such corporation shall be held 
to be indebted to the defendant in the original suit to the 
amount of the judgment against the principal defendant, un¬ 
less within three days after the return day of such sum¬ 
mons, such corporation shall appear and show a sufficient 
reason to the satisfaction of the justice for having failed to 
answer such summons, and the justice shall thereupon on 
the third secular day render judgment against such corpora¬ 
tion as against other garnishees, for the amount of such debt 
and with like effect; but on such cause being shown, such 
officer may make disclosure and be examined as other garni¬ 
shees and proceedings thereafter shall be the same as 
though answer had been made within the time limited there¬ 
for. If judgment shall not have been rendered against the 
principal defendant, or if judgment shall have been rendered 
and the time for appeal shall not have expired, said garnish¬ 
ment case shall stand adjourned until the determination of 
the principal suit, and the proceedings thereafter shall be the 
same as in cases against individuals. 

(381) § 14393. Sec. 33. No summons in garnishment 
shall issue against a municipal corporation, or against the 
state of Michigan, under the provisions of the preceding sec¬ 
tion, until a judgment shall have been rendered against the 
defendant in the principal suit: Provided, however, That 
the state and the several counties thereof shall not be pro¬ 
ceeded against in garnishment under the provisions of this 
act where the liability of the principal defendant accrued 
prior to the date when this act takes effect. 

Am. 1919, Act 233. 

(382) § 14394. Sec. 34. When any corporation shall 
wish to appeal, in cases where it has not answered as gar- 
.nishee, it shall in addition to the other requirements of law, 
file with the justice a full and complete answer in writing 
as such garnishee, verified by the oath of an officer of the 
corporation having knowledge of the facts. 




LAWS RELATING TO INSURANCE. 


177 


CRIMINAL ENACTMENTS. 

FRAUDULENT STOCK. 

An Act to prevent the issue and sal£ of fraudulent stock by incor¬ 
porated companies. 

[Act 128, S. L. 1855.] 

The People of the State of Michigan enact: 

(383) § 15080. Section 1 . Any person or persons who issuing fraud- 
shall fraudulently issue or cause to be issued, any stock, uIent st ° ck ’ 
scrip, or evidence of debt, of any bank, insurance, mining, felony^ e 
plank, or other incorporated company of this state, or who 

shall sell or offer for sale, hypothecate, or otherwise dispose 

of any such stock, scrip, or other evidence of debt, knowing 

the same to be so fraudulenty issued, shall be deemed guilty 

of a felony, and on conviction thereof shall be punished by Punishment. 

imprisonment in the state prison not more than ten nor less 

than one year. 

S6e also the so-called “Blue Sky Law,” Act 220, P. A. 1923. 

See Ford v. Kalamazoo Cir. Judge, 192 / 337. 

(384) § 15081. Sec. 2. Any person or persons who Knowingly 
shall sell, or offer for sale any stock thus fraudulently is* selling fraud- 
sued, and purporting to be the stock, scrip, or evidence of hiw^uSshed. 
debt of any corporation located out of the state of Michi¬ 
gan, knowing the same to be so fraudulently issued, or shall 
hypothecate, or in any manner dispose of the same for value, 

shall, on conviction thereof, be punished by imprisonment in 
the state prison not more than ten nor less than one year. 

(385) § 15082. Sec. 3. Every banking, insurance, min- with whom 
ing, plank road, or other incorporated company, which issues to fll e list of 
script or shares, shall within ninety days after the passage shares - 

of this act, file with the secretary of state a list of the num¬ 
ber of shares issued by said corporation, and the names of 
the owners thereof and their postoffice addresses, with the 
number of shares owned by each; and annually thereafter To make an- 
shall file with said secretary of state during the months of nual report. 
January or February, in each and every year, a statement 
similar to that above required, showing the ownership of the 
shares of said corporation at the day of the date of said 
statement; all of which statements, including the first, shall 
be made by one of the officers of said company, under oath: 

Provided, That corporations which file an annual report Proviso, 
with the secretary of state containing a list of stockholders 
with the postoffice addresses and the number of shares held 
by each, shall not be required to file a separate list under 
this act. 

(386) § 15083. Sec. 4. In case any of said incorporated Fine for 
companies shall fail so to make such primary or such annual Statement! file 
statements as are above required, they shall be liable to pay etc * 

a fine of not more than five hundred dollars for any such vio¬ 
lation of this law, which may be recovered in the name of the 



178 


STATE OF MICHIGAN. 


Fine, how 
disposed of. 


Employes 
not required 
to insure 
with any par¬ 
ticular 
company. 


Contracts so 
made declared 
void. 


Proviso, 
agreement 
between em¬ 
ployer and 
employe. 


Penalty for 
violation of 
act. 


people of the state of Michigan, in any court of record, and 
when so collected shall be paid into the township treasury 
of the town or city where such corporation is located, for the 
benefit of the primary school fund of said town or city. 


REQUIRING INSURANCE IN PARTICULAR COMPANIES. 

An Act to prohibit corporations from requiring any of its employes 
to procure life or accident insurance in any particular company 
or companies, and to declare void all contracts hereafter made be¬ 
tween any corporation and its employes providing for life or acci¬ 
dent insurance by such employe in any particular company. 

[Act 209, P. A. 1895.] 

The People of the State of Michigan enact: 

(387) § 11357. Section 1. That it shall hereafter be 
unlawful for any company or corporation doing business in 
this state or for any of the officers and agents of any such 
company or corporation, to require any of the employes of 
such company or corporation to take out or obtain a life, 
accident or life and accident policy in favor of such employe 
or other person in any particular or designated life, acci¬ 
dent or life and accident company or association. 

(388) § 11358. Sec. 2. All contracts hereinafter made 
between any such company or corporation and any employe 
of said company or corporation requiring or stipulating that 
the employe so contracting shall procure, obtain or have a 
policy of insurance in any particular or designated company 
or association shall be void: Provided, That nothing in the 
foregoing provisions of this act is intended to prohibit, or 
shall be construed as prohibiting the employers of labor and 
the persons employed from voluntarily' making agreements 
with each other for contributions of money by the latter to 
any fund to be accumulated in their behalf and for their 
benefit in common with others, and in such case from further 
agreeing that the employer may deduct from their wages, 
from time to time, the sums due from them under such agree¬ 
ment. 

(389) § 11359. Sec. 3. The violation of any of the pro¬ 
visions of this act is hereby made a misdemeanor, and any 
company or corporation violating any of the provisions of 
this act shall be punished by a fine of not more than two 
hundred dollars for each and every offense, and any share¬ 
holder, officer or agent of any company or corporation vio¬ 
lating the provisions of this act shall be punished by im¬ 
prisonment in the county jail not more than sixty days, or 
by a fine of not more than one hundred dollars for each 
offense, or both such fine and imprisonment at the discre¬ 
tion of the court. 




LAWS RELATING TO INSURANCE. 


179 


An Act to prohibit untrue, false or malicious statements in regard 
to fraternal beneficiary societies, insurance companies, and re¬ 
ciprocal exchanges. 

[Act 283, P. A. 1923.] 

The People of the State of Michigan enact: 

(390) Section 1 . Any person who shall make, utter, cir- Misdemeanor, 
eulate or transmit to another or others, any untrue, false or 
malicious statement, as to the financial condition of any fra¬ 
ternal beneficiary society, insurance corporation, insurance 
company, reciprocal exchange, or other insurer, doing busi¬ 
ness in this state, and shall thereby injure any such fraternal 
beneficiary society, insurance corporation, insurance com¬ 
pany, reciprocal exchange, or other insurer, or who shall 
counsel, aid, procure or induce another to originate, make, 
utter, transmit or circulate any such statement with like pur¬ 
pose shall be guilty of a misdemeanor, and upon conviction, Penalty, 
shall be fined not to exceed one thousand dollars or impris¬ 
oned in the county jail for a period not exceeding one year, 
or by both such fine and imprisonment. 


KILLING OF INSURED LIVESTOCK. 

An Act to provide a punishment for the wilful injury or killing of 
live stock insured by any live stock insurance company, with in¬ 
tent to defraud such insurance company. 

[Act 165, P. A. 1893.] 

The People of the State of Michigan enact: 

(391) § 15352. Section 1. That any person who shall The unlawful 
injure or kill any horse, mule or other live stock which shall mai^insured! 
be insured by any live stock insurance company authorized 

to do business in this state, when such killing or injury shall when guilty 
be with the wilful intent on the part of such person to de- of felony> 
fraud such insurance company, whether such person shall be 
the owner of such insured property or not shall be deemed 
guilty of a felony, and upon conviction thereof shall be pun- penalty, 
ished by a fine not exceeding five hundred dollars or by im¬ 
prisonment in the state prison for a term not exceeding two 
years, or by both such fine and imprisonment, in the discre¬ 
tion of the court. 

BURNING OF INSURED PROPERTY. 

[Extract from ch. 154, R. S. ’46.] 

(392) § 15289. Sec. 9. Every person who shall wilfully Burning prop- 
burn any building, or any goods, wares, merchandise, or erty insured - 
other chattels, which shall be at the time insured against 

loss or damage by fire, or shall wilfully cause or procure the 




180 


STATE OF MICHIGAN. 


Forgery of 
records and 
other instru¬ 
ments. 


Uttering 
forged in¬ 
struments. 


Insurance of 
buildings of 
county. 


same to be burned, with intent to injure the insurer, whether 
such person be the owner of the property or not, shall be 
punished by imprisonment in the state prison not more than 
ten years. 

This section includes two distinct offenses—where any person shall “wilfully 
burn insured property, with intent to defraud the insurer,” and where anyone 
“shall wilfully cause or procure the same to be burned, with intent to injure 
the insurer.”—Meister v. People, 31/112; People v. Jones, 24/215; Jhons v. 
People, 25 / 499; Hamilton v. People, 29 / 173; People v. Mix, 149 / 260; People 
v. Woods, 206 / 11. 


FORGERY. 

[Extract from ch. 155, R. S. ’46.] 

(393) § 15432. Section 1. Every person who shall 
falsely make, alter, forge, or counterfeit any public record, 
or any certificate, return or attestation of any clerk of a 
court, public register, notary public, justice of the peace, 
township clerk, or any other public officer, in relation to any 
matter wherein such certificate, return, or attestation may 
be received as legal proof, or any charter, deed, will, testa¬ 
ment, bond or writing obligatory, letter of attorney, policy 
of insurance, bill of lading, bill of exchange, promissory 
note, or any order, acquittance or discharge for money or 
other property, or any acceptance of a bill of exchange, or 
indorsement, or assignment of a bill of exchange or promis¬ 
sory note for the payment of money, or any accountable re¬ 
ceipt for money, goods or other property, with intent to in¬ 
jure or defraud any person, shall be punished by imprison¬ 
ment in the state prison not more than fourteen years, or 
in the county jail not more than one year. 

(394) § 15433. Sec. 2. Every person who shall utter 
and publish as true, any false, forged, altered or counterfeit 
record, deed, instrument or other writing mentioned in the 
preceding section, knowing the same to be false, altered, 
forged or counterfeit, with intent to injure or defraud as 
aforesaid, shall be punished by imprisonment in the state 
prison not more than fourteen years, or in the county jail 
not more than one year. 


MISCELLANEOUS. 

INSURANCE OF COUNTY BUILDINGS. 

[Extract from ch. 14, R. S. ’46.] 

(395) § 2370. Sec. 44. When directed by the board of 

supervisors, the county treasurer shall cause to be insured 
any or all the public buildings belonging .to the county, as 
said board shall direct, and the insurance thereon shall be 
taken in the name of the treasurer, and his successors in 
office. 





LAWS RELATING TO INSURANCE. 


181 


(396) § 2371. Sec. 45. In case of the destruction of, or 

damage done to the buildings so insured, the treasurer shall 
have authority, and it shall be his duty, to demand and re¬ 
ceive the moneys which shall be due on account of such in¬ 
surance, and in case of neglect or refusal to pay the same, he 
shall sue for and collect such moneys in his name of office 
whenever directed by the board of supervisors, and pay the 
same into the county treasury, to be used in repairing or re¬ 
building such public buildings. 

Under this section, the supervisors have no authority to expend money re¬ 
ceived from insurance upon public buildings for any other purpose than the 
reconstruction of the same.—Att’y General v. Alcona supervisors, 167 / 667. 


INSURANCE ON STATE PROPERTY. 

An Act to provide for state insurance on state property and against 
liability arising or that may arise under the provisions of act 
number ten of the first special session of nineteen hundred twelve. 

[Act 388, P. A. 1913.] 

The People of the State of Michigan enact: 

(397) § 9268. Section 1. On and after the passage of 
this act, no officer or agent of this state and no person or per¬ 
sons having charge of any public buildings or property of 
the state shall pay out any public moneys or funds on ac¬ 
count of any insurance against loss by fire, lightning or tor¬ 
nado, or shall in any manner contract for or incur any in¬ 
debtedness against the state on account of any such insur¬ 
ance upon any of the public buildings, furniture, fixtures, or 
property of any kind whatever belonging to the state, or 
against any liability arising or that may arise under the pro¬ 
visions of act number ten of the first special session of nine¬ 
teen hundred twelve, except in a manner hereinafter provided. 

(398) § 9269. Sec. 2. Upon July first, nineteen hundred 
thirteen, and annually thereafter, the commissioner of in¬ 
surance of this state shall provide for the insurance by the 
state of all state property in the following manner: First, 
he shall determine the insurable value of each item of prop¬ 
erty and shall fix the rate of insurance, which rate shall not 
exceed sixty cents per hundred dollars of insurance; second, 
he shall certify to the auditor general the amount of insur¬ 
ance upon such property to be carried by the state, together 
with a statement of the premium on such insurance accord¬ 
ing to the rates fixed as above provided, and the auditor 
general shall order the state treasurer to credit to an ac¬ 
count which shall be kept by the treasurer and known as the 
“state insurance fund” an amount equal to the premium as 
fixed by the commissioner of insurance, and the amount so 
credited by the state treasurer to the state insurance fund 
shall be debited by the state treasurer to the general or con¬ 
tingent fund of the state: Provided, however, That on July 


Treasurer to 
collect 
moneys in 
case of 
damage. 


State 

insurance. 


Duty of com¬ 
missioner of 
insurance. 


State insur¬ 
ance fund. 


Proviso. 




182 


STATE OF MICHIGAN. 


first, nineteen hundred fourteen, and annually thereafter 
such amount shall be debited by the state treasurer to the 
current expense fund appropriated by the legislature for 
each state institution or department, and the amount so 
debited by the state treasurer shall be deducted by him from 
any funds which may be in his hands, or which may there¬ 
after come into his hands and be payable to the account of 
said state institution or department, for the care and main- 
Proviso. tenance of such state buildings and property: Provided, 
however, That whenever such state insurance fund shall 
equal one million dollars no further sum shall be credited 
thereto until such fund shall be less than one million dollars, 
investment (399) § 9270. Sec. 3. The commissioner of insurance 

of fund. and state treasurer shall cause not less than ninety per cent 
of the moneys in said “state insurance fund” to be invested 
and reinvested in the securities in which fire insurance com¬ 
panies organized under the laws of this state are authorized 
to invest, and in like manner may sell and dispose of such 
securities as may be necessary to carry out the provisions of 
Proviso. this act: Provided, however, That no such investment shall 
be made nor any securities sold or disposed of except by and 
with the consent and approval in writing of the board of 
state auditors. • 


When damage 
to be fixed. 


Payment of 
loss. 


Additional 

amounts. 


Transfer of 
funds. 


(400) § 9271. Sec. 4. In case any buildings or property 
of the state shall be damaged by fire, lightning or tornado, 
the commissioner of insurance shall within thirty days, or 
as soon as possible thereafter ascertain and fix the amount 
of such damage and forthwith file with the state treasurer 
and the auditor general a statement of the same. 

(401) § 9272. Sec. 5. When the amount of loss has 
been fixed and determined by the commissioner of insurance 
and certified to the auditor general, the auditor general shall 
issue a warrant in the amount fixed by the commissioner of 
insurance as ? transfer of the amount fixed as damages from 
the state insurance fund and credited to the proper fund of 
the officer, board of control, board of trustees, or other agents 
in whose control said buildings or property belong, to be used 
by said officer, board, or agent by and with the consent of 
the board of state auditors, for the rebuilding or restoring 
of the property damaged, and to be disbursed by the state 
treasurer in such manner as other state funds for the use of 
said officer, board, or agent are paid out; and if during the 
rebuilding or restoring of such property it shall be necessary 
in the opinion of said board of state auditors to expend any 
additional amounts over and above the amounts certified by 
the commissioner of insurance to the auditor general, then 
there may be transferred from the state insurance fund and 
credited to the proper fund an amount equal to ten per cent 
of such certified amount, but in no case to exceed fifty thou¬ 
sand dollars, to be paid out in the same manner as provided 
for the payments made from the original transfer; and if at 
the time of any such award of loss or damage bv the com¬ 
missioner of insurance, there shall not be in the state insur- 



LAWS RELATING TO INSURANCE. 


183 


ance fund an amount equal to such award, the auditor gen- 
eral shall, notwithstanding this fact, draw his warrant pay¬ 
able from the general fund, and the state treasurer shall 
promptly pay such warrant out of any moneys in his hands 
m the manner above provided. 

(402) § 9273. Sec. 6. Upon July first, nineteen hundred Assessment 

thirteen, and annually thereafter the commissioner of insur- fSnd.” CCldent 
ance shall determine the premium or assessment necessary 
to pay the compensation accruing under act number ten of the 
first special session of nineteen hundred twelve to persons in 
the service of the state, except that such premium shall not 
cover the medical and hospital services and medicines as re¬ 
quired by said act, but the cost of same shall be paid by each 
state institution out of its current expense fund, and he 
shall then certify the same to the auditor general, and the 
auditor general shall order the state treasurer to credit to 
the “accident fund” created by the above mentioned act the 
amount so certified, and the amount so credited by the state 
treasurer to said accident fund shall be debited by him to 
the current expense fund appropriated by the legislature for 
each state institution or department, and for the purposes 
of this act the state shall be entitled to all of the benefits 
and subject to all of the liabilities of an individual employer 
who has availed himself of the provisions of part five of said 
act number ten of the first special session of nineteen hun¬ 
dred twelve: Provided, however, That any credits that may proviso, 
be due the state under said act shall be credited to the re- credits - 
spective funds or accounts contributing to said accident fund. 

.(403) § 9274. Sec. 7. A duplicate copy of all reports Duplicate 

and statements required herein of the commissioner of insur- statements - 
ance and of each officer, board or agent in each section of 
this act, shall be filed with the auditor general by each such 
officer, board or agent. 

(404) § 9275. Sec. 8. The commissioner of insurance Assistants, 
may employ such assistants as may be necessary and as the 
board of state auditors may authorize for the carrying out 

of the provisions of this act. 

(405) § 9276. Sec. 9. All acts or parts of acts inconsist- Repealing 

ent with this act are hereby repealed. clause. 

(406) Sec. 10. From and after the enactment of this state insur- 
section, the state insurance fund shall not be increased in fncrease," etc., 
excess of its existing amount; and no assessment shall here- of - 

after be made against any department, board, institution or 
office of the state during any fiscal year excepting as shall 
be ordered by the state administrative board, who shall de¬ 
termine the necessity therefor, the total amount to be assessed, 
not exceeding the rate fixed in section two hereof, and 
the time when such assessment shall be made. Upon receipt 
of the order of the said board the commissioner of insurance 
shall proceed to put such order into effect in the manner 
hereinbefore provided in section two. 

Added 1921, (1st ex. sess.), Act 4. 




184 


STATE OF MICHIGAN. 


Fees, amount, 
etc. 


Franchise 

fee. 


Fees 

payable. 


FEES, ETC., OF CORPORATIONS. 

An Act prescribing the fees, taxes and charges to be paid to the 
state by corporations doing or seeking to do business in this 
state; prescribing the method and basis of computing such fees, 
taxes and charges; requiring certain annual reports to be filed by 
corporations; providing for the disposition of the moneys received 
under this act and prescribing penalties for non-compliance with 
the provisions thereof. 

[Act 85, P. A. 1921.] 

The People of the State of Michigan enact: 

(407) Section 1. Hereafter the fees to be paid to the 
secretary of state by or in behalf of corporations, for the pur¬ 
poses herein specified, shall be as follows: For filing, ex¬ 
amining and certifying articles of domestic corporations, five 
dollars; for filing and examining articles or certificates of 
incorporation, and other papers connected with the applica¬ 
tion of a foreign corporation for admission to do business in 
Michigan, ten dollars; for filing and examination of any an¬ 
nual or special report required by law, two dollars; for ex¬ 
amining, filing and certifying any amendment to the articles, 
either of domestic or foreign corporations, five dollars; for 
filing and examining any notice of final dissolution or change 
of attitude, five dollars; for preservation of records at the 
request of any corporation voluntarily dissolved, ten dollars; 
for certifying any part of the files or records pertaining to 
a corporation for which no other provision is herein made, 
a minimum charge of one dollar for each certificate, and fifty 
cents per folio for the matter so certified to; for certifying 
and forwarding the record of any determination of a fran¬ 
chise fee to the appeal board, ten dollars; all of which fees 
shall be paid by the corporation at the time of filing or when 
the service is rendered by the secretary of state. All such 
fees shall be in addition to the franchise fees prescribed in 
this act, and shall, when collected, be covered into the treas¬ 
ury of the state, and there be credited to the general fund. 

(408) Sec. 2. Every corporation organized or doing busi¬ 
ness in this state, other than those doing business for a profit, 
shall upon filing its articles, or, if a foreign corporation, 
upon filing its application for admission, pay to the secretary 
of state a fee of ten dollars for the privilege of exercising its 
franchises within this state upon such organization or admis¬ 
sion as the case may be; and at the time of filing each of its 
annual or other reports, as required by law, each such cor¬ 
poration shall pay a further fee of ten dollars to the secre¬ 
tary of state, for the privilege of exercising such franchise 
within this state for the period from the time of such report 
until the filing of the next succeeding report required by law. 

(409) Sec. 3. Every domestic corporation hereafter or¬ 
ganized for profit, and every foreign corporation for profit, 
hereafter applying for admission to do business within this 
state, shall, at the time of filing its articles or applying for 
admission, as the case may be, pay to the secretary of state, 



LAWS RELATING TO INSURANCE. 


185 


as an organization fee and for the privilege of exercising 
its franchises within this state, a sum equal to one-half mill 
upon the dollar for each dollar of the authorized capital stock 
of such corporation; and each corporation, heretofore or 
hereafter incorporated under the laws of or admitted to do 
business in this state, shall pay a proportionate fee upon 
each and any increase in its authorized capital stock made 
subsequent to the passage of this act: Provided, That in Proviso, 
case of a foreign corporation, such fee shall be computed corporations, 
upon that portion of its authorized capital stock represented 
by the portion of its property owned and used in Michigan: 

And provided further, That in no case, either as to a domestic Further 
or a foreign corporation, shall the organization fee be less minimum, 
than twenty-five dollars. The term “corporation” as used “Corporation”, 
in this act shall be deemed to include partnership associa- what deemed - 
tions, limited, whether domestic or foreign, all joint stock 
associations having any of the powers of corporations, and 
such common law trusts or trusts created by statute of this 
or any other state or country exercising common law powers 
in the nature of corporations, in addition to such other cor¬ 
porations as are referred to in this act. 

Am. 1923, Act 233. 

(410) Sec. 4. Every corporation organized or doing Privilege 
business under the laws of this state, excepting those herein- fee * 
after expressly exempted therefrom, shall, at the time of filing 

its annual report with the secretary of state of this state, as 
required by section seven hereof, for the privilege of exer¬ 
cising its franchise and of transacting its business within 
this state, pay to the secretary of state, an annual fee of 
two and one-half mills upon each dollar of its paid-up capital 
and surplus, but such privilege fee shall in no case be less Minimum and 
than ten dollars nor more than fifty thousand dollars. maximum. 

Am. Id. 

(411) Sec. 4-a. Every building and loan association or- Building and 
ganized or doing business under the laws of this state shall uons. ass ° cia ’ 
at the time of filing its annual report as required by section 

seven hereof, for the privilege of exercising its franchise and 
of transacting its business within this state, pay to the secre¬ 
tary of state an annual fee of one-half mill upon each dollar 
of its paid in capital and legal reserve. 

Am. Id. 

(412) Sec. 4-b. Every corporation organized for profit Mining 
under the laws of this state or doing business in this state, com P anies - 
principally engaged in the development of mines and mining 

of iron, copper, silver and other mineral ores within this state, 
shall, at the time of filing its annual report with the secretary 
of state as required by section seven hereof, for the privilege 
of exercising its franchise and of transacting its business Fee. 
within this state, pay to the secretary of state, an annual fee 
of two and one-half mills upon each dollar of the fair average 



186 


STATE OF MICHIGAN. 


4 


Minimum and 
maximum. 


IIow fees 
computed. 


“Surplus,” 
what deemed. 


Annual 

report. 


value of its issued capital stock for the preceding year ending 
June thirty. In estimating the value of capital stock, the 
surplus and undivided profits shall be included but such 
fee shall in no case be less than ten dollars nor more than 
fifty thousand dollars. 

Am. Id. 

(413) Sec. 5. In the case of computing the privilege 
fees prescribed in sections three and four of this act as to for¬ 
eign corporations, such computation shall be made upon the 
proportion of the corporation’s property owned and used in 
Michigan in the ratio that such property bears to the en¬ 
tire property of the corporation, and such ratio shall be ap¬ 
plied by the secretary of state to determine the amount of 
the authorized capital stock of such corporation owned and 
used in Michigan, and to determine what portion of the cor¬ 
poration’s paid-up capital and surplus, severally, are owned 
and used in Michigan. The term “surplus,” as used in this 
act, shall be taken and deemed to mean the net value of the 
corporation’s property, less its outstanding indebtedness and 
paid-up capital; but in no case, either as to domestic or as to 
foreign corporations, shall any deduction be made from the 
item of paid-up capital, in computing the privilege fee there¬ 
on, by reason of any impairment of the same. None of the 
property or capital, of any corporation subject to paying the 
privilege fee prescribed in section four which is located with¬ 
out the state of Michigan, and none of the capital or surplus 
of such corporation represented by property exclusively used 
in interstate commerce, shall in any case enter into the com¬ 
putation of the net amount of the authorized capital, or the 
capital and surplus, as the case may be, upon which the com¬ 
putation of the privilege fees shall be made, and the secretary 
of state shall in all such cases be authorized to require the 
corporation to furnish detailed and exact information touch¬ 
ing such several matters before making a final determination 
of the privilege fee to be paid by such corporation. For the 
purpose of this act only, each share of no par value shall be 
deemed to have the value of at least one dollar, or such value 
as shall have been fixed by the corporation for the sale of 
such stock, or the book value as determined by the secretary 
of state, whichever may be the higher. In any case where 
the capital of a corporation is not divided into shares, the 
whole property thereof shall be deemed to be the authorized 
capital stock for the purpose of this act. 

Sec. 6 was repealed by act 233, P. A. 1923. 

(414) Sec. 7. Every corporation, for profit, whether do¬ 
mestic or foreign, authorized or admitted to do business with¬ 
in this state, excepting only railroad companies and interur- 
ban railroad companies, and telephone and telegraph com¬ 
panies, express companies, and foreign insurance companies, 
shall, in the month of July or August of the year nineteen 
hundred twenty-one and annually thereafter in the same 



LAWS RELATING TO INSURANCE. 


187 


months, file a report with the secretary of state showing its 
condition at the close of business upon the thirty-first day of 
December or upon the date of the close of its fiscal year next 
preceding the filing of such report, which report shall be upon 
a form to be prescribed by the secretary of state, and shall what to 
contain, among other statements, the name of the corporation, contain - 
place of doing business either within or without the state, the 
names and addresses of its officers and directors, the amount 
of authorized capital stock, and the number of shares of each 
class authorized, the capital stock subscribed, and paid for, 
and the par value of each kind of shares authorized; the 
market value of and the price fixed by the corporation for 
the sale of its shares of no par value, if any; the nature and 
kind of business in which such corporation is engaged, and 
the nature, location and value of the property owned and 
used by the corporation both in and without Michigan, given 
separately; and a complete and detailed statement of the 
assets and outstanding liabilities of the company. Such re¬ 
port shall contain such other and further information as may 
be required by the secretary of state Avhose duty it shall be 
to compute the fees prescribed in this act; and shall be signed 
and sworn to before an officer duly authorized to administer 
oaths by the president or the vice-president, and the secre¬ 
tary or the general manager of the corporation, and shall be 
forwarded to the secretary of state at Lansing. All other 
corporations, subject to this act, shall file their reports with 
the secretary of state, in such form as shall be prescribed by 
him, or as shall otherwise be prescribed by law, within the 
months of July and August of the year in which required 
by the general corporation laws of this state. Any list of 
stockholders required by law to be filed with the secretary 
of state shall be filed with and as a part of the annual report 
required herein. 

Am. 1923, Act 233. 

(415) Sec. 8. Every corporation paying any fee for any Receipt, 
purpose to the secretary of state shall be entitled to a receipt what t0 sll0W - 
for the same, showing the time of payment and the purpose 

for which paid. All fees of every nature paid to the secre- Fees, where 
tary of state under the provisions of this act shall be covered credit ed. 
into the state treasury and shall there be credited to the 
general fund of the state, and shall be available for any pur¬ 
pose for which such general fund is made available by law. 

(416) Sec. 9. The attorney general as chairman thereof, Appeal board, 
the state treasurer, and the auditor general as secretary there- impose. 

of, shall constitute an appeal board for the purpose of hear¬ 
ing any appeals from the decision of the secretary of state 
as to the amount of any privilege fee determined by him, and 
any corporation conceiving itself aggrieved as to the amount 
of such fee based upon the facts may appeal to such appeal 
board within ten days after such determination for a redeter¬ 
mination thereof. Such board shall be authorized to com¬ 
pute the fees in such case upon the same basis and by the 




188 


STATE OF MICHIGAN. 


Failure to 
make report. 


Saving 

clause. 


Corporate 
property, 
how assessed. 


Proviso. 


Further 

proviso. 


Corporations 
paying spe¬ 
cific taxes. 

Property of 
insurance 
companies, 
how com¬ 
puted. 


same rules as are hereinbefore prescribed; and in all such 
cases the decision of such appeal board, as to the amount 
of such fees, shall be final, and shall be certified back to the 
secretary of state as soon as made. 

(417) Sec. 10. In case any corporation required to file 
the report and pay the fee or fees prescribed in this act shall 
fail or neglect to make such report within the period required 
by law, such corporation shall, in addition to its liability for 
such privilege fee and interest thereon, be subject to a penalty 
of one hundred dollars, and an additional penalty of five dol¬ 
lars for each day’s continuance of such failure or neglect, 
which penalty or penalties shall be collected in an action to 
be instituted by the attorney general of this state as pre¬ 
scribed by law; and it shall be the duty of the secretary of 
state to report to the attorney general every case of such 
failure or neglect promptly. 

(418) Sec. 11. Should any provision or section of this 
act be held to be invalid for any reason, such holding shall 
not be construed .as affecting the validity of any remaining 
portion hereof, it being the legislative intent that the act shall 
stand, notwithstanding the invalidity of any such provision 
or section. 

Sec. 12 repeals inconsistent acts. 


COMPUTATION OP TAXABLE CORPORATE PROPERTY. 

[Extract from Act 206, P. A. 1893.] 

(419) § 4005. Sec. 11. All corporate property, except 

where some other provision is made by law, shall be assessed 
to the corporation as to a natural person, in the name of the 
corporation. The place where its office is located in its 
articles of incorporation shall be deemed its residence: Pro¬ 
vided, Its business is actually transacted at such office; but 
if it shall establish its principal office in any other place than 
the place named in its articles of incorporation, then the 
place where it transacts its principal business shall be deemed 
its residence for all the purposes of this act. If there be 
no principal office in this state, then at the place in this 
state, where such corporation or agent transacts business: 
Provided further, That all the personal property of all cor¬ 
porations heretofore or hereafter organized under the laws 
of this state for the purpose of engaging in maritime com¬ 
merce or navigation shall be assessed only in the city, vil¬ 
lage or township which is stated in their original articles 
of association or in any amendment thereof heretofore or 
hereafter made to be the location of their general office for 
business. The property of corporations paying specific taxes 
shall be exempt as to the property covered by such taxation, 
except when otherwise provided by law. All other property 
of such corporation shall be taxed under this act. In com¬ 
puting the taxable property of insurance companies organ¬ 
ized under the laws of this state, the value of the real prop- 



LAWS RELATING TO INSURANCE. 


189 


erty on which a company pays taxes shall be deducted from 
its net assets above liabilities, as determined and shown by 
the last report of the commissioner of insurance, including 
in such liabilities the legal reserve required by the laws of 
this state, or the regulations of the insurance department, # 
and the remainder shall be the personal property for which 
the company shall be assessed. 

Taxation of insurance companies.—Insurance Co. v. Assessors, 91/517; Id. 

95 / 466; Mich. Mut. Life Ins. Co. y. Hartz, 129/101; City of Yale v. Ins. Co., 

179 / 254. 

This section indicates an intention to tax the property of the company, and 
not a design to impose a franchise tax.—F. & M. Ins. Co. v. Hartz, 132 / 518. 
Prior to the amendment of 1903, the reinsurance reserve fund of an insurance 
company was not considered a debt in the ordinary sense of the term and did 
not entitle the company to the exemption of an equal amount of credits from 
taxation.—Id. And it was properly included among liabilities in determining 
the net assets of an insurance company for the purpose of taxation under the 
section.—Mich. Mut. Life Ins. Co. v. Detroit Com. Council, 133 / 408; Assurance 
Co. v. Com. Council, 176 / 80. Place of residence, see Detroit v. Lothrop Estate 
Co., 136 / 265; Transportation Co. v. Detroit Assessors, 139/1. Situs of property. 

—Portsmouth Twp. v. Cranage Steamship Co., 148 / 230. 


TRANSCRIPTS WITHOUT FEE, TO SOLDIERS, ETC. 

An Act to require the issuance, without fee or charge therefor, of 
transcripts, under seal, of any records of the offices of secretary of 
state, adjutant general, judges of probate, county clerks and jus¬ 
tices of the peace, pertaining to pensions, insurance payments or 
annuities, to soldiers, sailors and marines of the several wars of 
the United States and to their widows or other dependents, either 
in person or by attorney. 

[Act 248, P. A. 1919.1 

The People of the State of Michigan enact: 

(420) Section 1. Upon request, either in person or by Transcripts 
attorney, transcripts, under seal, of any records of the offices without fee. 
of secretary of state, adjutant general, judges of probate, 
county clerks and justices of the peace, pertaining to pensions, 
insurance payments or annuities, shall, without charge or 
fee therefor, be issued to soldiers, sailors and marines of the 
several wars of the United States and to their widows or 
other dependents. 


CERTIFICATE OF DEATH, PRIMA FACIE EVIDENCE. 

, [Extract, from Act 217, P. A. 1897.] 

(421) § 5607. Sec. 4. Registers of deaths shall be sup- when t0 

plied by the secretary of state to registrars for recording j® sec - 
certificates of death, together with all blanks required for state . 7 ° 
the execution of this act. On the fourth day of each month 
the registrar of each township, village and city shall promptly 
transmit to the secretary of state, in an official envelope 
provided by the state and stamped with one full letter stamp, 
all the certificates of death filed in his office during the [pre¬ 
ceding] proceeding calendar month, with a statement of the 





190 


STATE OF MICHIGAN. 


Proviso, in 
cities. 


Monthly 
report to 
county clerk. 


Prim a 
facie evi¬ 
dence. 


Amounts and 
purposes. 


number of deaths so reported: Provided, That the registrars 
of cities, may in lieu of the original certificates of deaths 
transmit certified copies of the same to the secretary of state. 
If no deaths occurred, he shall make a return to that effect 
upon a postal card blank. The certificates of death returned 
to the secretary of state shall be permanently preserved, 
bound and indexed by him; the statistical data therein con¬ 
tained shall be compiled and published in the annual regis¬ 
tration report, and monthly bulletins shall be issued showing 
the mortality of the state in detail, the prevalence of impor¬ 
tant causes of death, and such other information as shall be 
of public interest and sanitary value. The registrar shall 
also send a transcript monthly to the clerk of his county con¬ 
taining a record of all of the deaths entered upon his register 
during the preceding calendar month for entry upon the 
county record of deaths. All certificates of death, local 
registers or county records authorized under this act or certi¬ 
fied copies thereof shall be prima facie evidence in all courts 
and for all purposes of the facts recorded therein. 

Under the provisions of Act 170, P. A. of 1921. all powers and duties now 
vested by law in the secretary of state with reference to the registration of 
deaths and the issuing of death certificates are vested in the state commissioner 
of health. 

CERTIFICATE OF DEATH: In an action on a life insurance policy where 
the defense was that the answers made by the insured to certain questions in 
the application were false, it w T as held that the certificate of death was admis¬ 
sible.—Krapp v. Metropolitan Life Insurance Co., 143 / 372. The certificate in¬ 
cluding that portion stating the contributing cause of death, is admissible in so 
far as it sets forth facts within the knowledge of the physician, but hearsay 
evidence in the certificate is not admissible.—Gilchrist v. Mystic Workers of the 
World, 188 / 466. But the physician who made said certificate would be pro¬ 
hibited from testifying to the facts therein stated which he acquired in his 
professional capacity while treating the deceased.—Krapp v. Metropolitan Life 
Insurance Co., 143 / 371. Under this section requiring the coroner to insert the 
cause of death in his certificate that he files with the board of health, and that 
a copy thereof shall be prima facie evidence in all courts and for all purposes 
of the facts recorded therein, the court was not in error in admitting in evidence 
the copy, which was, however, subject to contradiction.—Bromberg v. N. Am. 
Life Ins. Co., 192 / 143. 


APPROPRIATION FOR DEPARTMENT OF INSURANCE. 

An Act to make appropriations for the department of insurance for 
the fiscal years ending June thirty, nineteen hundred twenty-four, 
and June thirty, nineteen hundred twenty-five, for maintenance, 
operation and other purposes. 

[Act 268, P. A. 1923.] 

The People of the State of Michigan enact: 

(422) Section 1. There is hereby appropriated from the 
general fund for the department of insurance for the fiscal 
year ending June thirty, nineteen hundred twenty-four, the 
sum of ninety thousand three hundred forty dollars and for 
the fiscal year ending June thirty, nineteen hundred twenty- 
five, the sum of ninety-one thousand seven hundred ninety 
dollars, for the purposes and in the specific amounts as 
follows: 





LAWS RELATING TO INSURANCE. 


191 


Personal service: 

Commissioner . 

Other personal service 


For fiscal year 
ending June 
30, 1924 


For fiscal year 
ending June 
30, 1925 


$5,000.00 $5,000.00 

60,300.00 60,300.00 


Totals for personal service .... $65,300.00 


Supplies . 8,180.00 

Traveling expense . 13,000.00 

Other contractual service . 1,610.00 

Outlay for equipment. 2,250.00 


$65,300.00 

8,980.00 

14,000.00 

1,760.00 

1,750.00 


Totals 


$90,340.00 $91,790.00 


Each of said amounts shall be used solely for the specific 
purposes herein stated subject to the general supervisory con¬ 
trol of the state administrative board. 

(423) Sec. 2. The amounts hereby appropriated shall be how paid 
paid out of the state treasury, at such times and in such man- out - 
ner as is or may be provided by law. 

(424) Sec. 3. All fees or other moneys received by said Fees etc., 
department of insurance shall be forwarded to the state receive(L 
treasurer each month and shall be by said treasurer deposited 

in the state treasury to be disbursed in such manner and for 
such purposes as may be provided by law. 







































INDEX 


















INDEX 


(References are to compiler’s sections.) 


ABANDONMENT: 

of property to company, provision against, in standard fire policy 
ABSENCE: 


Sections 

247 


temporary, of teams, etc., policies of farmers’ mutuals construed to cover .... 

in adjoining counties . 

ABSTRACTORS: 

license required, fee .. 

application, form of .. 

refusal to grant, or revocation of . 

hearing and review by court . 

penalty for violation . 

ACCIDENT: 

or death, by, incorporation of companies to insure railway employes against 

capital stock required . 

disability or death by, casualty companies may provide indemnity for . 

conditions precedent to commencing business, proof required. 

fraternal benefit society may provide benefit for disability as result of. 

liability insurance against bodily injury or death by, general mutual company 

may do . 

ACCIDENT AND HEALTH INSURANCE COMPANIES: 


incorporation of . 

ACCIDENT INSURANCE: 

certificate of authority to transact . 

paid up capital required, securities deposited . 

annual statement, reserves, liabilities, impairment . 

ACCIDENT INSURANCE COMPANIES: 

employes not required to take out policy in any particular . 

contracts so made declared void . 

agreements between employer and employe . 

penalty . 

ACCIDENT OR CASUALTY: 

use and occupancy insurance against, general mutual companies may do. 

ACCOUNTS: 

refusal to submit, etc., proceedings to liquidate because of . 

of foreign company, examination of ... 

of certain reserves or credits of fraternal benefit societies. 

not covered by standard fire policy . 

ACCOUNTS RECEIVABLE: 

reservation of, from dividends of fire insurance companies . 

ACCUMULATED PROFITS: 

deposit notes to remain as security until, of mutual fire company reach certain 

amount . 

ACCUMULATION BASIS: 

valuation of fraternal benefit certificates on . 

deficiency, how met ... 

ACTIONS: 

to set aside orders removing discriminatory fire rates, jurisdiction. 

revoking agent’s license, jurisdiction . 

for recovery of premiums paid for unauthorized life or casualty insurance..^.. 

life policy not to contain provision limiting, to less than 6 years.. 

may not be maintained on contracts of unauthorized fire companies. 

on policy, conditions concerning, in standard fire policy . 

to vacate order of anti-discrimination commission . 

answer bv commission, when at issue, etc. 

commencement of, against foreign and domestic insurance companies. 

fraternal cooperative and mutual benefit associations . 

foreign and domestic surety and bonding companies . 

ACTUAL RESIDENTS: 

of U. S., trustees or directors to be . 

majority to be residents of state . 

ACTUARIES: 

appointment of, by commissioner of insurance . 

traveling and other expenses of. how audited, etc... 

certification by, of valuation of certificates of fraternal benefit society. 

ADDED CLAUSES: 

conditions concerning, in standard fire policy . 

or amendments, to charter, etc., of fraternal benefit society subsequent to 

certificate . 

ADJOINING COUNTIES: , , . . 

when mutual companies may insure real or personal property in . 

ADJUDICATION: , . 4 

remedy by, to be first exhausted before suit against company.*. 


277 

281 

106 

107 

a os 

108 
109 


143 

178 

179 
194 


320 

131 

135 

136 

137 

387 

388 

388 

389 

320 

23 

69 

217 

247 

228 


229 

217 

217 


42 

95 

130 

149 

243 

247 

302 

302 

367 

367 

367 


59 

59 

5 

6 

215 

247 


197 

2S1 


53 



















































196 


INDEX. 


ADJUSTERS: Sections 

fire and compensation, certificate of authority, fee, etc. 102 

suspension or revocation, notice, renewal . 103 

penalty for violations . 104 

ADJUSTMENT: 

of losses by directors of mutual fire insurance company. 229 

compelling attendance of witnesses touching, or arbitration of losses. 286 

ADMINISTRATORS: 

when constituted members of mutual fire insurance companies . 229 

ADMISSION: 

of foreign companies . 67-87 

of foreign fraternal benefit society . 208 

of foreign general mutual companies . 333 

ADOPTED CHILDREN: 

may be beneficiaries of fraternal benefit member. 195 

ADOPTION: 

of corporate name, bv general mutual companies. 317 

ADVANCE: 

by loan on life policy, conditions prerequisite to . 148 

of money by director, etc., to general mutual company. 32S 

when not a claim against company . 328 

no commission, etc., to be paid in connection with. 328 

ADVANCE PAYMENTS: 

life policy must contain provision relative to . 148 

bond of fraternal benefit society conditioned on return of. 201 

certificate authorizing solicitation of members and collection of. 201 

held in trust during organization . 201 

ADVANCE PREMIUM: 

fire companies not charging, exempt from Chapter IV, Part 1. 44 

ADVERSE PUBLICATIONS: 

by commissioner of insurance, concerning fraternal benefit societies... 221 

ADVERTISING: 

false, etc., by fire insurance companies prohibited . 236 

prominence given in, of fire company assuming risk . 236 

AFFIDAVIT: 

filed where indemnity desired in unauthorized company. 128 

prima facie proof of notice of cancellation of casualty policy . 185 

AGE: 

limit for membership in fraternal benefit society . 196 

AGE LIMITS: 

of health and accident policy, optional standard provision. 160 

children, that fraternal benefits may provide death or annuity benefits for.... 349 

AGENTS: 

contracts that insurance be placed with particular, prohibited. 36 

of foreign companies, liable to penalties . 69 

for service of process, when foreign companies to appoint . 70 

stipulation, service on commissioner or deputy . 70 

, copy of appointment, where filed .. 70 

upon fogreign general mutual companies . 333 

of foreign fire or inland marine companies, not to solicit business under 

compacts . SO 

of foreign fire, fire marine, etc., companies not to make compacts. 79 

business in violation, unlawful . 80 

defined . 88 

may employ solicitors . 91 

right of, to procure insurance on risks previously refused. 93 

notice given, of refusal to license . 95 

clerical help of, provisions relative to, not to apply to. 96 

penalty on, for violating chapter relative to . 98 

officers or, penalty on, for certain frauds . 114 

penalty on, for rebating, etc. 115 

misrepresentation and twisting by, penalty .'. 116 

commission, acceptance of unauthorized, penalty . 118 

embezzlement by, penalty . 119 

foreign companies required to do business through duly licensed.. 120 

notice of violations, revocation, readmittance . 121 

who deemed, of company in controversy between assured and. 173 

recovery of moneys paid to, of unauthorized life insurance company. 174 

limitation of action .*. 174 

of life insurance company, penalty on, for discriminating between white and 

colored persons . 175 

of fraternal benefit society, commissioner may examine, under oath. 218 

foreign societies . 220 

of fire insurance companies, right of, to advertise own business. 236 

penalty on, for receiving application for unauthorized fire company. 245 

space for signatures of, in standard fire policy. 247 

signing by, of riders modifying standard fire policy . 248 

fire company, penalty on, for issuing policy, etc., contrary to law'. 257 

AGE UNDERSTATED: 

life policy to contain provision as to amount payable if. 148 

AGREEMENTS: 

that insurance be placed in particular companies, prohibited . 36 

preventing open and free competition, foreign companies, prohibited. 77-78 

by agents . 79 

business in violation, unlawful . ..;. 80 

life companies not to make, extending period of salary beyond one year. 142 






































































INDEX. 


197 


AGREEMENTS.—Con. Sections 

exception, renewal commissions, etc. 142 

conditions and restrictions imposed on life companies during business under.... 174 

number of, certain casualty companies to have, precedent to commencing 

business . 179 

what constitutes, between fraternal benefit society and member. 197 

of voluntary association . 197 

certified copies of, how received in evidence . 197 

required of mutual fire, marine, automobile, etc., companies precedent to 

business . 227 

notes, when payable . 227 

when accepted as capital stock . 227 

certain conditions which void standard fire policy unless provided by. 247 

required of mutual automobile insurance company before commencing. 294 

number of, required precedent to business by mutual fire, cyclone, etc., com¬ 
panies . 278 

articles and by-laws of mutual fire, etc., companies may provide for, without 

notes . 280 

AIRCRAFT: 


insurance against damage by, etc., by general mutual company. 

ALTERATION: 

certain, of application for health and accident insurance, misdemeanor. 

when deemed performed by insurer . 

of premises, conditions concerning, in standard fire policy. 

AMENDMENTS : 

to by-laws of companies on assessment plan, filing and approval of. 

to articles of association, when to take effect. 

triplicate copies of, disposition of . 

to be upon prescribed form . 

commissioner to keep blank forms on hand . 

to change name . 

to fraternal benefit charter, etc., enacted subsequent to issuance of certificate.. 

to constitution and by-laws by fraternal benefit society. 

certified copies filed with commissioner . 

of articles of fraternal benefit society already organized . 

how and when filed, w'hen operative . 

of articles respecting increase, etc., of capital stock of fire, marine, automobile, 

etc., companies . ; . 

charter, of mutual companies limited to one or more counties, may provide for 

outside adjoining counties . 

to automatically extend to policies existing . 

of articles of association of mutual company, filing of. 

of articles, etc., under code, of companies pi-eviously organized. 

AMENDMENTS TO CONSTITUTION: 

of state, unlawful to employ person to procure signatures to petitions for. 

AMERICAN EXPERIENCE LIFE TABLE: 

rate of mortality in annual official valuation established by. 

schedule . 

fraternal benefit society maintaining certain reserve computed by, may grant 

paid-up protection . 

limit in value . 

AMORTIZATION: 

of bonds, etc., of life insurance, etc., companies . 

AMOUNT RECOVERABLE: 

limited, under mutual automobile insurance policy. 

ANALYSTS: 

license required, fee . 

application, form of . 

refusal to grant, or revocation of . 

hearing and review by court . 

penalty for violation . 

ANCIENT ORDER OF UNITED WORKMEN: 

chapter relative to cooperative casualty companies not to apply to. 

ANNUAL DEPOSITS: 

net, construed in provisions relating to reciprocal insurance. 

minimum amount, when deficiency made up . 

ANNUAL EXAMINATION : (See Examination.) 

of fire insurance companies by commissioner . 

ANNUAL LICENSE: , „ 

fraternal benefit society required to have, term, how renewed, fee, etc...*. 

effect of certified copy of, as evidence . 

foreign societies ... 

ANNUAL LICENSE FEE: (See Fees.) 

• paid by attorney for reciprocals upon filing annual report . 

ANNUAL MEETINGS: ... 

of corporation, time of holding, stated in articles . 

amendment of articles at, notice given . 

mutual company .... 

renewal of corporate existence by vote at . 

directors or trustees of casualty company chosen at . 

of casualty company, financial, etc., statement made at . 

certificate or policy account mailed to members ..... 

consent of members of farmers’ mutuals at, to insure certain risks in cities 

and villages . 

ANNUAL RENEWAL: (See Renewal.) 

of certificate of authority of foreign company. 


320 

164 

164 

247 


51 

52 
52 
52 
62 
63 

197 

201 

214 

202 

202 


231 

281 

281 

318 

338 


123 


139 

139 

194 

194 

21 


265 


106 

107 

108 
108 
109 

189 

308 

308 

238 

207 

207 

208 


313 

47 

52 

52 

57 

180 

181 

181 

268 


67 
































































198 


INDEX. 


ANNUAL REPORT: Sections 

of commissioner of insurance, when made, number printed, etc. 9 

information published in . 15 

companies liquidated or resuming business published in. 27 

fraternal benefit societies to file, with commissioner. 215 

statement or table of credits or reserves filed with commissioner. 217 

to members, secretary of mutual fire, cyclone, etc., company to make. 284 

penalty for not making . 285 

to commissioner by fraternal benefits providing whole family protection. 352 

of insurance companies to commissioner, used in determining corporate tax.... 419 

ANNUAL STATEMENTS: 

of companies doing business in state, when and where filed. 10 

of insurance companies, when made, what to contain . 13 

on form prescribed, what may include . 13 

to be furnished to companies . 14 

information contained in, published in annual report. 15 

printed at expense of state . 15 

when commissioner suspects correctness of, may examine, etc. 17 

of foreign companies .. 09 

foreign fire or fire and marine seeking admittance to make. 74 

automobile insurance companies . 76 

foreign companies to file, containing data for tax computation. 84 

certain failures not to relieve company . 84 

of business done, gross premiums chai’ged or returned, unauthorized com¬ 
panies . 101 

casualty companies ?to make . 137 

when made, etc. 181 

sworn, of reinsurance made by fire or marine insurance companies, to whom 

made . 235 

financial, attorney for reciprocals to file, with commissioner. 309 

annual license fee to accompany . 313 

of general mutual company to report money advanced by directors, et§. 328 

of surety company, what to contain, where filed. 343 

filing of, a condition precedent to renewal of certificate. 348 

by fraternal benefits providing whole family protection . 352 

ANNUAL TAX: (See Tax.) 

foreign companies to pay, rate, etc. 83 

in lieu of other taxation . 83 

certain failures not to relieve company. 84 

if delinquent, how collected . 85 

per diem penalty . 86 

ANNUAL VALUATION: 

of life policies, how based, compensation for making . 139 

foreign companies . 139 

ANNUITIES: 

insurance and, contracts may be issued providing for both, on same life. 153 

deferred annuities . 153 

extent of application, of subsection concerning policy provisions, to. 153 

business involving guaranty, etc., for payment of, deemed life insurance. 174 

for children between two and eighteen years, fraternal benefits may provide.. 349 

insurance, transcripts under seal, issued to soldiers, etc., without fee. 420 

ANSWER : 


service on fraternal benefit society not valid when, required in less than 30 

days ... 209 

filing of, in action to set aside order of anti-discrimination commission. 302 

ANTI-DISCRIMINATION COMMISSION: 

hearings by, to determine discrimination in rates by fire companies. 42 

questions arising concerning employer’s liability companies. 302 

action to vacate order, answer, when at issue, jui'isdiction, etc. 302 

ANTI-REBATE: 

provisions .115, 117 

APPEALS: (See Review.) 

in proceedings to revoke license, etc... 117 

APPLICANT: 


penalty on physician for false report on, for life and casualty insurance. 

APPLICATION: 

for order to show cause in liquidation proceedings . 

where made . 

of rating bureau for license, what to show, fee, etc.... 

of foreign company for admittance . 

what to accompany . 

of foreign mutuals to do employer’s liability. 

for admission of foreign automobile insurance company. 

for agent’s or solicitor’s license, form of .’ 

for license of auditor, abstractor, counselor or analyst, form. 

not to be contained in life policy unless attached .. 

on request, attached to certain life policies .. 

penalty on company for non-compliance . 

false statements in, for health and accident policy, when not bar to recovery." 
for health and accident insurance, alteration of, without consent, misdemeanor 
person soliciting, for life insurance deemed company agent in any controversy 
penalty for soliciting, for life insurance before company complies with law... 

how recovered . 

bona fide, number required upon organization of fraternal benefit society. 1. !! 

certified copies of forms filed with commissioner.. 

penalty for false statements, etc.... ]. 


176 


23 

23 

34 

67 

67 

72 

76 

97 

107 

146 

155 

156 
162 
164 

173 

174 
174 
201 
201 
225 





































































INDEX. 


199 


APPLICATION .—Con. Sections 

number of, mutual Are, marine, automobile, etc., companies must have before 

commencing . 227 

penalty for receiving, for unauthorized Are companies . 245 

for co-insurance, form of . 247 

to attach average or pro rata clause . 249 

form of . 253-54 

for reciprocal insurance, certain solicitation by attorney, unlawful. 311 

g'eneral mutual companies to hold certain number before commencing business 321 

in case of employer’s liability and workmen’s compensation.. 321 

who may make . 322 

of surety company to commissioner for authority to do business . 341 

APPOINTMENT : 


of commissioner of insurance, term of oAice, etc. 

in case of vacancy . 

of agent for service of process on foreign company . 

copy, where Aled .. 

of commissioner as attorney for service of process by fraternal beneAt societies 

of commissioner by surety company, as attorney for service of process. 

foreign companies .. 


1 

2 

70 

70 

209 

339 

341 


APPOINTMENT OF RECEIVER: 

in liquidation proceedings, preliminary steps towards, where may be taken.... 
APPOINTMENTS: 

revocation of oAice, by commissioner of insurance . 

APPRAISAL: 

of loss, provisions for, under standard Are policy. 

APPROPRIATION: 

for insurance department for years ending June 30, 1923 and 1924. 


29 

5 

247 

422-24 


APPROVAL: 

order of, removing discriminatory Are rates, where Aled. 

actions to set aside, jurisdiction . 

of contract of consolidation or reinsurance by stockholders, etc. 

Anal approval by commissioner . 

delivery of securities on deposit... 

of form of health and accident policies by commissioner. 

by policy holders for transfer or reinsurance of risks of casualty company.... 

transfer, etc., to be to authorized companies only... 

of medical examination of applicant of fraternal beneAt society. 

of mergers and transfers by fraternal beneAt societies . 

when commissioner to issue certiAcate . # .. 

by stockholders of increase, etc., of capital stock of Are, marine, automobile, 

etc., companies . 

Aling and, of form of average or pro rata clauses by commissioner. 

by commissioner of increase of capital stock of automobile insurance company 
of proposed premiums, etc., of employer’s liability companies with commissioner 

of articles of general mutual companies by commissioner... 

by commissioner of election to adopt provisions of general mutual law. 

of form of policy of general mutual companies. 

ARBITRATION: 

compelling attendance of witnesses touching, adjustment or, of losses. 

ARBITRATORS: , .. 

no person excused from testifying before, in proceedings for violations. 

ARTICLE: s A . 

prohibiting member, etc., from commencing suit, not a bar. 

adjudication . 

ARTICLES OF ASSOCIATION: 


contents of . 

mutuals . 

how acknowledged and issued . 

copy certiAed for Aling with county clerk . 

submitted to attorney general for examination . 

certification to commissioner . 

amendment of ... 

amendments to, to be upon prescribed form . 

amendments to, when to take effect . 

triplicate copies of, disposition of . 

certiAed copy of, as evidence of corporate existence. 

to continue as before extension of corporate existence ... 

commissioner to keep blank forms on hand . 

for amendments ... 

may change or adopt new name by amending ............ 

foreign company, to accompany application for admission 


how certiAed ...•• • . 

reserve or mortality funds, other use than .as prescribed in, unlawful..... 

life and casualty companies’ security deposit made one year after date or. 

new, upon reorganization of life and casualty companies.......... . 

of casualty company may designate directors or trustees for Arst year. 

of fraternal beneAt societies, where Aled .• • .. 

and proceedings thereunder, when become void . 

foreign society to Ale certiAed copy of .. •’'2 *'NA'’ *' ’ 

of Are, marine, automobile, etc., corppames, amendments to, respecting m- 

of "'mutual automobile C insurance company, limit of amount recoverable pro¬ 
vided in ... 

provision for assessments for surplus fund •••••• . V'* E’iAY A 

liability of members of mutual Are, cyclone and hail companies to be stated in 


42 

42 

65 

65 

65 

157 

186 

187 

196 

203 

203 


231 

254 

260 

296 

218 

330 

331 

286 

124 

53 

53 

47 

47 

48 

49 
49 
49 
52 
52 
52 
52 

54 
57 
62 
62 
63 
67 
67 

113 

131 

134 

180 

201 

201 

208 


231 


265 

266 
279 



































































200 


INDEX. 


ARTICLES OF ASSOCIATION.—Con. ^ Sections 

and by-laws of mutual fire, etc., companies may or may not provide for 

premium notes . 280 

assessments upon agreements, etc. 280 

of employer’s liability insurance companies . 291 

grant of additional corporate right under, to exchange reciprocal insurance 

contracts . 310 

for purpose of general mutual insurance . 31b 

approval and filing of, by commissioner . 318 

of mutual companies, how amended .... 318 

of foreign general mutual company, filing of, a condition to admittance. 33d 


ASSESSMENT PLAN: 

extent of application of sub-section relative to policy provisions, to companies 

on . 

casualty insurance upon, who may incorporate . 

classes of insurance that may be carried on . 

conditions precedent to doing business, proof required . 

ASSESSMENTS: (See Premiums; Contributions.) 

power of commissioner to make, during receivership or insolvency. 

may bring suit to recover . 

agreements and, required of certain casualty companies precedent to commenc¬ 
ing business . 

call or notice of, by casualty company, what to specify... 

policy of casualty company not to be cancelled for nonpayment of, without 

notice. 

affidavit prima facie evidence of . 

publication of notice of, by mutual fire insurance company. 

of stockholders of fire insurance company to pay deficiency in assets.... 

when call made, amount . 

return of certificate of stock upon refusal. 

for surplus fund of mutual automobile insurance company, right to provide... 
mode and manner of collecting, to be set up in articles of mutual fire, etc., 

companies . 

upon agreements, notes, etc., of mutual fire, cyclone and hail companies. 

levy of, to cover liabilities of mutual fire, cyclone and hail companies. 

excessive loss . 

penalty on officer for not making . 

by employer’s liability companies to pay losses, etc., in lieu of cash funds. 

of employer’s liability companies, how fixed and determined. 

not effective until approved and filed with commissioner. 

to restore assets of general mutual companies . 

against state institutions, etc., for insurance, administrative board to determine 
amount of . 


153 

177 

178 

179 

28 

28 


179 

183 

185 

185 

229 

238 

239 
239 
2G0 


279 

280 
282 
282 
283 

294 

295 
29b 
327 


405 


ASSETS: 

protection of, upon termination of corporate life . 

capital and, of foreign company, examination of, previous to admittance...... 

amount required . 

investment of . 

examination of . 

contingent, required of foreign mutuals doing employer’s liability. 

cash, required of unauthorized fire companies .. 

distribution of, when company insolvent, provision not to prevent. 

business of life companies suspended during deficiency in. 

notice given, business penalized . 

requirement as to investment of, of foreign fraternal benefit societies. 

when premium notes considered as, of fire, marine, automobile, etc., companies 
what not accepted as, in calculating reinsurance reserve of stock fire companies 

in inland trip and marine companies . 

unexpired time risks ... 

requisition by commissioner to supply deficiency in, of fire insurance companies 

publication of notice upon failure to supply. 

call on stockholders, amount, etc. 

procedure by commissioner when, of mutual fire companies, insufficient to 

justify Qontinuance . 

of reciprocal insurers subject to examination by commissioner. 

investment of, of general mutual companies. 

assessment to restore, of general mutual companies. 

order from commissioner to relieve, for certain time. 

ASSETS AND LIABILITIES : 

contingent, what valuation report of fraternal benefit society to show as. 

when may show net value of certificates, how computed. 

ASSIGNMENT: 

of policy before loss, when voids standard fire policy. 

ASSIGNS: 

when constituted members of mutual fire insurance companies. 

ASSISTANT ACTUARIES: 

compensation of . 

ASSISTANT EXAMINERS: 

compensation of . 

ASSOCIATION: 

domestic, liquidation or dissolution of. 

word, substituted for “insurer” in standard health and accident policy. 

word “company” held to include, in chapter relative to fire contracts. 

ASSUMED NAME: 

companies not to adopt . 


58 

07 

68 

b8 

09 

72 

100 

133 

139 

139 

208 

230 

234 

234 

234 

238 

238 

239 


240 

309 

325 

327 

327 

215 

215 

247 

229 

5 

5 


22 

159 

246 

63 


































































INDEX. 


201 


ASSUMPSIT. , Sections 

action of, for repayment of moneys secured on misrepresentation of capital 

stock, etc. 

liability of director, etc., for amount of insurance . Ill 

action of, to recover premium paid for unauthorized life or casualty insurance 130 

for recovery of moneys paid to unauthorized life insurance company. 1<4 

limitation of action . 1‘ 4 

ATTACHMENT: 

benefits of fraternal benefit society not liable to. 213 

to compel attendance of witnesses touching adjustment, etc., of fire losses.... 288 

of corporate shares . "11 

copy of, where left . " 1 " 

ATTORNEY: (See Service of Process.) 

resident agent or, for service of process on foreign companies. dj 

stipulation, service on commissioner or deputy . 10 . 

copy of appointment, where filed . 10 

authorized to execute reciprocal insurance contracts .. •••; . "04; 

for reciprocals to file statement of maximum single risk with commissioner... 307 

examination of commercial rating of subscribers . "07 

to file annual financial statement with commissioner. 3U9 

certain exchange or solicitation by, unlawful. "11 

certificate of authority required annually . *^12 

annual license fee paid by, upon filing annual report.•.. "13 

for service of process, commissioner to be, for unauthorized fire companies.... 101 

for foreign general mutual companies . """ 

under act authorizing surety company bonds . ""0 

foreign companies .. 

for service of process, upon insurance companies, who to be. "by 

service in duplicate ... 

ATTORNEY GENERAL: 1R 

commissioner to report violations to .. .••••/ . 7 o 

member of commission to determine discrimination in fire rates . " 

to examine articles of association . 

to certify to commissioner if approved... ’q 

commissioner to examine company’s capital stock. 

amendments to articles .•. 

company to pay examination fee of five dollars to. 

domestic mutuals, ten dollars . 

funding of ....... 

duty of, as to recovery of penalties provided by code. {fl? 

examination by, of mutual life and casualty companies . .. 

certificate made by, upon reorganization of life or casualty company. 13 

duty of, to recover penalty for unauthorized life insurance business........... J-* 

duty of, upon certain report by commissioner concerning fraternal benefit 

society.. • . ojy> 

member of anti-discrimination commission . 

AUDITOR GENERAL: . 

to send statement to companies examined. ••••:••• . 

bond filed with, by licensee procuring policy of unauthorized company. 

AUDITORS: 106 

license required, fee ... 

application, form of . 1ns 

refusal to grant or revocation ... 

hearing and review by court . 

penalty for violation .. 

inability to meet requirements for, liquidation proceedings because of. 

AUTOMOBILE INSURANCE: . 22fi 

number that may incorporate for, hazards included, etc. - 

by general mutual companies, against fire, etc... n 

against liability from ownership, etc., fire excepted. cSZU 

AUTOMOBILE INSURANCE COMPANIES: 

foreign, admission of . oo 

tax levied against . ^ 

incorporation of . 007 

stock companies, capital stock required . 227 2 „ 1 

how increased or decreased ...... 997 

mutual companies, agreements required, cash and notes . 22 j 

notes, when payable . 227 

when accepted as capital stock . 2R A 

number of incorporators, hazards may cover. fig 

agreements required before commencing . ^65 

articles of association . 227 

maximum single risk . 227 

foreign companies ... ; .. 227 

reinsurance not included in determining risk . 232 

reinsurance of risks by .. 933 

sale of goods, wares, merchandise, etc., by .. 

number of incorporators, hazards covered, etc. 2 gn 

capital stock required, minimum . 2 go 

how increased, notice given .. v**l ... 261 

reserve fund required of, when increased, etc. 

when capital impaired, duty of commissioner ... 2 go 

deposit of securities by, provisions governing . 

provisions relative to, in standard health and accident policy. 










































































202 


INDEX. 


AVERAGE OR PRO RATA CLAUSE: 

when company has right to issue and attach 

form of application for . 

form of clause . 

AWARD OF DAMAGES: 

provisions concerning, in standard fire policy 


Sections 

252 

253 

254 


247 


B. 

BANKERS: 

may incorporate mercantile mutuals . 

BANK NOTES: 

insurance on, inland or ocean marine. 

BAR TO RECOVERY: 

when false statements in application for health and accident policy not a. 

BAR TO SUIT: 

by-laws, etc., prohibiting commencement of suit not to be. 

adjudication . 

BENEFICIARIES: 

when copy of application furnished to, upon request . 

penalty for non-compliance ... 

rights of, under standard health and accident policy... ; . 

rights, etc., of, how governed as to health and accident policy issued in 

violation .i. 

in case of death of, first, benefit accrues to person designated. 

proceeds of casualty policy payable to, free from claims, etc. 

when to creditor, etc. 

fraternal death benefits confined to certain . 

how member may designate or change ... 

society may limit scope of . 

who may be, of member having no relative. 

may make estate . 

when, member obtains vested right . 

when not to acquire individual right in funds . 

debts of, benefit not liable to process for . ; . 

free nomination of, child entitled to, upon reaching age for membership. 

BENEFICIARY FUND: 

casualty company call for assessment to contain correct statement of. 

BENEFIT CERTIFICATES: 

fraternal benefit society may issue, for term less than whole of life. 

issuance of, while organizing, how conditioned. 

certified copies of, filed with commissioner... 

BENEFIT MEMBERS: 

annual valuation report mailed to . 

BENEFITS: 

orders which provide, exclusively through local lodges, granted certain ex¬ 
emption . 

amount of, fraternal benefit certificate to specify . 

derivation of fraternal benefit fund fr’om which, paid . 

of fraternal benefit society not attachable, etc. 

certain fraternal benefit societies exempt from provision requiring certificate 

shall state amount of . 

BENEVOLENT SOCIETIES: 

certain, granted certain exemption under qode. 

certain, exempt from provisions governing fraternal benefit societies. 

BILLS: 

not covered by standard fire policy . 

examination of, of insured, provided for in standard fire policy. 

BILLS OF EXCHANGE: 

insurance on, inland or ocean marine . 

BLANKET POLICY: 

issued to certain corporations, exempted from certain health and accident pro¬ 
visions . 

BLANK FORMS: (See Forms.) 

for annual statements, who to prepare, what to contain . 

to be furnished to companies . 

BOARD OF ARBITRATORS: 

no person excused from testimony before, in proceedings for violations. 

BOARD OF DIRECTORS: 

of employer’s liability company, duty regarding premiums or assessments. 

to fix dividends on expiring policies . 

to make rules, etc., for prevention of injuries. 

duty of, relative to indemnification of company against withdrawals. 

specified in articles of general mutual companies. 

of general mutual companies, when may adopt by-laws . 

resolution of, electing to adopt general mutual company provisions. 

filing and approval of, bv commissioner. 

BOARD OF STATE AUDITORS: 

to audit certain expenses of insurance department . 

BODILY HEALTH: 

penalty on physician for false report on, of applicant for life or casualty 

insurance . 

BODILY INJURY: 

automobile insurance not to include loss by reason of. 

or death by accident, liability insurance against, by general mutual company 
disability insurance against, by general mutual company. 


269 

226 

162 

53 

53 

155 

156 
159 

165 

169 

184 

184 

195 

195 

195 

195 

195 

195 

198 

213 

351 

183 

194 

201 

201 

215 


3 29 

197 

198 
213 

223 


129 

223 

247 

247 

226 


167 

13 

14 

124 

292 

295 

297 

298 
316 
319 
330 
330 

6 


176 

226 

320 

320 



























































INDEX. 


203 


BOMBARDMENT: Sections 

insurance against . 226 

BONDS: 

required of commissioner of insurance, amount, approval, etc. 2 

etc., of life insurance company, amortization of . 21 

given by trustees of expired corporation . 58 

how filed and conditioned . 58 

investment of capital in .'. 61 

required of licensee procuring policies of unauthorized companies . 101 

required of secretary and treasurer of casualty company . 179 

approved by commissioner . 179 

or notes, certain that fraternal benefit society may invest funds in. 199 

surety, of fraternal benefit society conditioned upon return of advance pay¬ 
ments . 201 

sums due on, reserved from dividends of fire insurance companies. 228 

surety company, authorized . 339 

BOOK ACCOUNTS: 

sums due on, reserved from dividends of fire insurance companies . 228 

BOOKS: 


refusal to submit, etc., proceedings to liquidate because of. 

when to be opened to subscriptions . 

if mutuals, to receive propositions, etc. 

of foreign companies, examination of . 

penalty for refusal to exhibit . 

no person excused from producing, etc., in proceedings for violations. 

of casualty company, where kept . 

open to inspection by members . 

papers, etc., of fraternal benefit society, access to, by commissioner. 

foreign societies . 

examination of, of insured, provided for in standard fire policy. 

BOTTOMRY: 

insurance upon, inland or ocean marine . 

BREACH OF TRUST : 

commissioner of insurance may be removed for. 

BROKERS: 

not to transact business under compact, of certain foreign companies. 

penalty on, for rebating, etc. 

commission, acceptance of unauthorized, penalty . 

embezzlement by, penalty .:. 

BROKERAGE: 

certain provision deemed not to authorize insurance . 

BROTHER: 

minor may insure for benefit of, etc. 

BUILDINGS: 

penalty for wilfully burning insured ... 

BULLION: 

insurance on, by inland or ocean marine companies . 

when not covered by standard fire policy . 

BUREAU RATINGS: 

fire companies may write insurance independent of . 

deviation . 

BURGLARY: 

insurance on automobile against . 

BURGLARY INSURANCE: 

certificate of authority to transact . 

paid up capital required, securities deposited . 

annual statement, reserves, liabilities, impairment . 

BURGLARY, THEFT, HOUSEBREAKING : 

incorporation of companies to insure against . 

BURNING OF INSURED PROPERTY: 

wilful, with intent to injure insurer, penalty. 

BY-LAWS: 

power of directors or trustees to make... 

of companies on assessment plan, filed and approved by commissioner 

prohibiting commencement of suit, not a bar. 

adjudication ... 

to continue as before extension of corporate existence. 

foreign company, to accompany application for admittance.. 

how certified ...•,•••!•;. 

reserve or mortality funds, other use than as prescribed in, unlawful. 

not to be contained by reference in life policy unless attached..... 

when portion of, not to be made part of health and accident policy. 

of casualty company to provide for voting by members. 

power of fraternal benefit society to make, amend, etc. 

filing of certified copies of amendments to . 

prima facie evidence of adoption ......••••••; . 

contingent mutual liability of employer’s liability company fixed in. 

of general mutual companies, adoption of .... ••••••; . 

of mutual insurance company to provide for votes member entitled to. 

filing of, of foreign general mutual company, a condition to admittance... 


23 

50 

50 

69 

122 

124 

181 

182 

218 

220 

247 

226 

1 

80 

115 

118 

119 

93 

172 

392 


226 

247 


33 

41 


226 


135 

136 

137 

131 

392 


51 

51 

53 

53 

57 

67 

67 

113 

146 

161 

182 

201 

214 

214 

293 

319 

323 

333 


CALCULATION: (See Computation.) 

of reinsurance reserve for fire and fire marine companies 
CALL: ^ t 

assessment, by casualty company, what to specify . 


234 

183 




































































204 


INDEX. 


CALL.—Con. , J . . . 

periodical, or dues, casualty policy not to be cancelled for non-payment oi, 

without notice ... 

affidavit, prima facie evidence of notice ... 

on stockholders of fire companies to supply deficiency in assets . 

return of stock upon refusal, etc., to pay.. 

annual, for assessments by directors of employer’s liability company. 

CANCELLATION: 

optional standard provisions of health and accident policy relative to. 

CANCELLATION OF POLICY: 

conditions concerning, in standard fire policy . 


Sections 

185 
185 
239 
239 
292 

160 

247 


CAPITAL: 

investment of, and funds . ; .. •;. 

and assets of foreign company, examination of, previous to admittance . 

amount required . 

investment of . ; ... 

impairment of, of casualty companies, cancellation of authority. 

paid in, required of ocean marine companies..;• 

liability of trustees, etc., of fire, marine, automobile, etc., companies until, 

paid in ..... 

impairment of, of automobile insurance company, duty of commissioner upon 

required of surety companies . 

deposit of securities required . 


61 

67 

68 
69 

137 

226 

230 

261 

341 

341 


CAPITAL STOCK: 

amount of, stated in articles . 

portion paid before commencing business .. 

examination respecting, following approval of articles . 

mutuals .. • • • 

when books opened to subscriptions of .I • • • 

mutuals . 

renewal of corporate existence by two-thirds vote of. 

company not to acquire, etc., of other company for purpose of control. 

or financial condition, penalty for misrepresentation of . 

directors and officers, joint liability of . 

forfeiture of chartered privileges . 

required of life and casualty companies . 

additional for general indemnity and surety bonding business. 

on monthly premium payment plan . 

insuring funeral benefits .;. 

retirement of guaranteed, on reorganization of life and casualty companies... 
required of companies insuring railway employes against loss of position, etc... 

fraternal benefit societies defined as association without, etc... 

of stock company under chapter relative to fire, marine, automobile, etc., 
insurance . 


47 

47 

49 

49 

50 
50 
57 

110 

111 

111 

111 

131 

131 

131 

131 

134 

144 

190 

227 


mutual requirements . 

increase or decrease of . 

of automobile insurance company, minimum 
how increased, notice given . 


227 

231 

260 

260 


CARDS: 

fire insurance companies not to issue false representations by. 236 

CASH: 

paid in, amount required of manufacturers’ mutuals precedent to business. 278 

CASH ASSETS: 

required of mutual fire companies to do business as stock companies. 241 

treated as capital in determining solvency...... 241 

paid up, surety company to make statement to commissioner concerning. 341 

CASH FUNDS: 

contingent liability of members of employer’s liability company not provided 

for by .. • • •;. 293 

assessments bv employer’s liability company to pay losses, etc., in lieu of.... 294 

CASH PREMIUM: 

amount of deposit note in addition to, of mutual fire company, how determined 229 

maximum premium may be, under general mutual law ... 324 

CASUALTY INSURANCE: 

upon assessment or co-operative plan, who may incorporate. 177 

classes of insurance which may be carried on . 178 

conditions precedent to commencing business, proof required. 179 

CASUALTY INSURANCE COMPANIES: 

to finally pass on claim within six months after final proofs. 53 

provisions adopted by, prohibiting commencement of suit, not a bar. 53 

adjudication ... 53 

section relative to consolidation or reinsurance not to apply to. 66 

foreign, amount of security deposit required of. 71 

when deposit not required . 71 

unlawful to transact business without certificate of authority . 135 

capital required, securities required . 136 

annual statement, reserves, liabilities, impairment . 137 

directors or trustees of, when chosen, term, etc. 180 

annual statements of, of transactions and financial condition, where made.... 181 

when certificate or policy account mailed to members . 181 

books, papers and documents of, where kept . 181 

emergency fund of, with income to be trust fund. 181 

deposited under trust deeds or invested . 181 

privileges of members of . 182 

proceeds of certificate or policy, to whom paid. 184 


































































INDEX. 


205 


CASUALTY INSURANCE COMPANIES .—Con. Sections 

no ? f » to t> e cancelled for non-payment of dues, etc., without notice_ 185 

affidavit pnma facie evidence of . 185 

transfer or reinsurance of risks by, how approved, effect of. 186 

to authorized company only . 187 

disposition 0 f reserve or emergency fund of, upon insolvency. 188 

CERT. IFICATE : 

by commissioner authorizing extension of period company may hold real estate 55 

or policy account of casualty company mailed to members . 181 

of casualty company, not to be cancelled for non-payment of dues, without 

notice . 185 

affidavit prima facie evidence of . 185 

fraternal benefit society may receive part of contribution in cash and charge 

remainder against . 194 

remainder limited . 194 

privilege granted to certain societies only . 194 

preliminary, when commissioner to furnish fraternal benefit society with. 201 

of approval by commissioner of merger or transfer by fraternal benefit society 203 
of approval by supreme governing body of merger, etc., of fraternal benefit 

societies .,. 203 

as to organization filed by foreign fraternal benefit society. 208 

to accompany premium note before accepted as capital stock of mutual fire, 

marine, etc., companies . 227 

of authority from commissioner authorizing mutual fire companies on stock 

plan . 241 

death benefit, children’s, conditions precedent to issuance of, by fraternal 

benefit society . 350 

continuation of benefit, under whole family protection, for benefit of child’s 

estate . 354 

of number of shares held by defendant stockholders, when officer to furnish... 372 
CERTIFICATE OF ACKNOWLEDGMENT: 

appended to articles of association . 48 

CERTIFICATE OF APPROVAL: 

by governor of seal of office of commissioner of insurance. 3 

by attorney general of articles . 49 

examination respecting capital stock by commissioner. 49 

by commissioner, and amendments to articles returned to company. 52 

CERTIFICATE OF AUTHORITY: 


issuance by commissioner of insurance . 

life of . 

power of commissioner to revoke. 

suspension of, for violating provisions concerning fire rates. 

certified copy of, as evidence of corporate existence. 

required by foreign company . 

retaliatory provisions concerning . 

when issued to . 

expiration and renewal of . 

not to do business except as specified in . 

refusal to be examined cause for revocation of . 

withheld from, that are not solvent . 

revocation of, for misrepresentation and twisting, hearing, notice, etc. 

for not doing business through resident agent, readmittance, etc. 

examination . 

of foreign life and casualty companies conditioned on deposit of securities.... 

when deposit not required ... 

of foreign fire or fire and marine company, when issued. 

of foreign Lloyds, when issued.. 

revocation of, for rebating, etc..'. 

hearing, notice, review . 

casualty insurance without, unlawful . 

capital required, securities deposited .. ; . 

commissioner may revoke company’s, for not attaching application. 

when commissioner may issue, to fraternal benefit society. 

prima facie evidence of existence . 

record made of, by commissioner . 

annual, required by attorney for reciprocal insurance. 

revocation of ... 

to foreign general mutual companies, when issued . 

of surety company, issuance by commissioner. 

filing of annual report a condition precedent to renewal. 

CERTIFICATE OF PERMISSION: . , ^ ^ 

by commissioner for investment of assets in home office building. 

CERTIFICATE OF SHARES: 

when purchaser on execution entitled to... 

when entitled to accrued dividends . 

CERTIFICATES: _ .. , .. 

when liability on, of casualty company ceases after dissolution. 

of fraternal benefit society, what to provide for...... .•. 

amendments, etc., to charter, etc., subsequent to issuance of . 

legal minimum valuation for .. 

exception as to disability benefits ..• • .. 

annual valuation of, societies to report, to commissioner . 

report ....... • • 

when 3 -t option m&y show net vstlue of certificates, how computed.. 

valuation of, on accumulation basis ..... • • • • 

of stock of fire, marine, automobile, etc., companies, par value of, upon in¬ 
crease, etc., of capital . 


11, 49 
11 
17 
43 
54 
67 
19 
67 
67 
69 
69 
81 
116-17 
121 
122 
71 
71 

74 

75 
115 
117 

135 

136 
156 
201 
201 
201 
312 
312 
330 

342-43 

348 


375 

376 


186 

197 

197 

215 

215 

215 

215 

215 

217 

231 





































































206 


INDEX. 


CERTIFICATES OF DEATH: Sections 

or certified copies of, made prima facie evidence for all purposes of facts 
recorded . 


421 


CERTIFICATES OF INSPECTION: 

issue of, under steam boiler insurance by general mutual companies. 

CERTIFICATION: 

by commissioner of insurance of expense of examining companies. 

of business done for unauthorized companies, where filed.. .. 

of articles and by-laws of foreign general mutual companies, a condition to 

admittance ..... 

of transcripts of records of insurance payments without fee to soldiers, etc. 

CERTIFIED COPIES: 

of papers, fees allowed commissioner of insurance for making. 

of articles, by-laws, etc., of foreign company seeking admittance. 

of agreement between fraternal benefit society and member, how received in 

evidence . 

effect of, of certificates of authority of fraternal benefit societies. 

of amendments to constitution, etc., of fraternal benefit society filed with com¬ 
missioner . . .;.. 

of books of account, etc., of insured, provided for in standard fire policy. 

of articles and by-laws of foreign general mutual companies, a condition to 
admittance . 


320 


6 

100 

333 

420 

19 

07 

197 

201 

214 

247 


332 


CHANGE IN CONTRACT: 

provision relative to, in standard health and accident policy . 

CHANGE OF VENUE: 

transfer of liquidation proceedings as in . 

CHARGE FOR COST: . . , . 

designated, in valuation of fraternal benefit certificates on accumulation basis 
CHARITABLE INSTITUTION: 

incorporated, when may be beneficiary of fraternal benefit member. 

CHARITABLE SOCIETIES: 

certain, granted certain exemption under code . 

certain, exempted from provisions governing fraternal benefit societies. 

CHARTER: 

violation of, by company, liquidation proceedings because of . 

corporate existence, renewal of, after expiration of . 

commissioner to consent . 

foreign company, to accompany application for admittance. 

how certified . 

when portion of, not to be made part of health and accident policy. 

of fraternal benefit society becomes void on discontinuance of business one year 

foreign fraternal benefit society to file certified copy of. 

of mutual company limited to one or more counties, may provide for outside 

adjoining counties . 

of foreign general mutual company, filing of, a condition to admittance. 

surety company to file certified copy of, with commissioner. 

CHARTERED PRIVILEGES: 

forfeited for misrepresenting capital stock, etc. 

CHATTEL MORTGAGES: 

conditions concerning, in standard fire policy . 

CHATTELS: 

mercantile mutuals may insure, against fire or lightning . 

CHIEF CLERK: 

commissioner of insurance may appoint. 

CHIEF EXAMINER: 

commissioner of insurance may designate . 

CHILD: 

minor may insure for benefit of, etc. 

CHILDREN: 

father may insure life for benefit of . 

insurance of, by casualty company of particular religious denomination. 

conditions precedent to commencing business, proof required. 

by legal adoption, may be beneficiaries of fraternal benefit member. 

between two and eighteen years, fraternal benefits may provide death or 

annuity benefits for .. 

CIRCUIT COURT: 

application to, for order to show cause in liquidation proceedings. 

in chancery, ti’ustees of expired corporation under control of . 

in chancery, Ingham county, actions commenced in, concerning fire rates. 

has jurisdiction in suits to vacate, etc., orders of anti-discrimination com¬ 
mission . 

suits against certain insurance companies commenced and tried in. 

CIRCULARS: 

to be issued by fraternal benefit society, certified forms filed with commissioner 
CITIES: 

risks that farmers’ mutuals may insure in certain. 

CITY BONDS: 

fraternal benefit society may invest funds in. 

CIVIL WAR: 

hazard not covered by standard fire policy ... 

CLAIMS: 

time of notice of, provisions relative to, in standard health and accident policy 
what not waiver of company rights in defense of, under health and accident 

policy . 

what funds of employer’s liability company available for payment of. 


159 

29 

217 

195 

129 

223 

23 

57 

57 
(57 
67 

161 

201 

208 

281 

333 

341 

111 

247 

269 

5 

5 

172 

169 

178 

179 
195 

349 

23 

58 
42 

302 

367 

201 

268 

199 

247 

159 

163 

295 





















































INDEX. 


207 


CLASSIFICATION OF RISKS: . Sections 

when prohibited contradictory provisions of health and accident policy not 

to apply to . 161 

of employer’s liability company to be filed with commissioner. 299 

unfair discrimination . 300 

uniform deviation . 301 

CLERICAL HELP: 

provisions relative to agents not to apply to, of. 96 

CLERKS : 

appointment of, by commissioner of insurance . 5 

compensation of . 5 

CLOVER HULLERS: 

threshers’ mutuals may insure . 272 

CO-INSURANCE: 

form of application for . 250 

rider clauses for, how signed . 251 

COLLATERAL LOANS: 

investment of capital and funds in. * 61 

in loans secured by bank stock . 61 

COLLISION: 

insurance on automobiles against hazards of . 226 

COLLISION INSURANCE: 

liability and, on automobiles . 259 

mutual companies . 263 

insurance against members’ own car . 265 

COLORED PERSONS: 

life insurance companies not to discriminate between white and. 175 

COMBINED CONTRIBUTION TABLE: 


COMBINED PURPOSES: 

life and casualty companies may incorporate for certain. 131 

COMMERCIAL RATING: 


of subscribers to reciprocal insurance, when filed with commissioner. 307 


COMMISSION: 

certain, non-resident agent not to receive .. 

agent’s, solicitor’s or broker’s, unauthorized, penalty. 

anti-discrimination, to determine discrimination in fire rates, members of. 

to determine questions concerning employer’s liability companies. 

certain requirements as to policies of general mutuals not applicable when, not 

paid . 

for approval of sprinkler heads, who to compose. 


COMMISSIONS: 

insurance on, inland or ocean marine. 

COMMISSIONER OF INSURANCE: 

chief officer of department, qualifications, how appointed, etc. 

not to be stockholder or director of insurance company. 

vacancy in office of, how filled . 

oath of office of, when taken, where filed . 

bond required of, amount, how approved, etc. 

to devise seal of office, how approved, where filed. 

may appoint deputies, examiners, clerks, actuaries, etc. 

duty devolving upon deputy in absence of . 

traveling and other expenses of, how audited, etc. 

to certify expense of examining insurance companies. 

to approve department expense before audit . 

not to retain perquisites .. ; . 

authorized to examine foreign companies . 

expense paid by such companies .... . 

annual report of, when made, number printed, etc. 

information published in . 

annual statements filed In office of . 

certificates of authority, when issued by . 

lif e of certificate ........... 

authority to examine insurance companies’ books, etc. 

to examine under oath, the officers.^ etc. 

to examine companies and revoke licenses . 

to publish result of investigation . 

to prepare forms for annual statements . 

to furnish printed forms to companies . 

for articles and amendments ..... 

may address inquiries to companies concerning doings, etc. 

' duty of company to reply ... 

may revoke authority .• •. 

to report violations to attorney general for action............... . 

computation by, of fire department or salvage corps retaliatory tax.... . 

to revoke authority of foreign company for non-payment of fees or taxes • • • • 
fees allowed, for making certified copies . 

to determine method of calculating value of bonds, etc., of insuicince companies 

certain reinsurance or merging unapproved by, subjects to dissolution. 

duty of, when court orders liquidation of company . 

may appoint special deputies in liquidation proceedings. 

authority to make assessments during receivership or insolvency. 

may bring suit to recover . 


88 

118 

42 

302 

332 

362 

226 

1 

1 

2 

2 

2 

3 

5 

5 

6 
6 
6 

7 

8 
8 
9 

15 
10 
11 
11 
12 
12 
17 

17 

13 

14 
62 
14 
14 
14 

16 

18 
18 

19 

20 
21 
23 

25 

26 
26 
28 
28 





































































208 


INDEX. 


COMMISSIONER OF INSURANCE.—Con. 

power of, in liquidation proceedings . 

as receiver, held accountable . 

bond may be required of . 

may file petition for liquidation, etc., in circuit court for Ingham county. 

to establish rating division for fire insurance . 

investigation of rates through division. 

authority of, to determine adequacy, etc., of fire rates . 

hearings .'. 

rating bureau license issued by. 

when may refuse, etc. 

rating bureaus to furnish, copies of surveys of risks . 

examination of rating bureaus by . 

may make inquiries concerning rate making. 

fire companies to file deviation from rate schedule with . 

member of commission to determine discrimination in fire rates, etc. 

order of approval removing discriminatory fire rates, filed with. 

actions to set aside, jurisdiction .. 

to examine as to capital stock following approval of articles. 

mutuals. 

when may issue certificate of authority to commence business . 

amendments to by-laws of companies on assessment plan filed with. 

amendments to articles filed with . 

certification of articles by, as evidence of corporate existence. 

certificate of, extending period company may hold real estate. 

certificate of permission by, for investment in home office building. 

consent of, to renewal of corporate existence after charter expires. 

copy of resolution renewing corporate existence filed with. 

recorded at expense of company . 

renewal fee .. 

may enjoin attempted dividends at expiration of corporate life. 

to have supervision of trustees of expired corporation. 

investment of capital, etc., in government securities subject to approval of. 

to prepare and keep on hand blank forms of articles. 

for amendments .*. 

for annual statements . 

company to pay filing fee of twenty-five dollars to. 

domestic mutuals, ten dollars . 

funding of . 

petition to, for consolidation or reinsurance .. 

final approval of contract by . 

order of, for delivery of securities on deposit. 

foreign company to secure certificate of authority from. 

application for, what to accompany. 

foreign companies, supervision and examination by . 

may revoke certificate upon refusal to allow . 

appointment of agent for service of process filed with. 

irrevocable stipulation of foreign company as to service of process on. 

when, to issue authority or license to foreign life and casualty companies. 

without deposit of securities . 

admittance of foreign fire or fire and marine companies by. 

admittance of foreign Lloyds by . 

approval of securities on deposit by . 

foreign fire, fire and marine, or marine and inland companies to file undertak¬ 
ing with . 

foreign companies to annually file tax statement with . 

tax receipt filed with . 

to license general, district, state or special agents . 

unlawful to act without license . 

license may be refused . 

may be revoked . 

application to, for agent’s or solicitor’s license . 

may license persons to procure policies of unauthorized companies. 

separate business account, what to show . 

when unauthorized fire companies to appoint, as its attorney in fact. 

duty relative to licensing adjusters, abstractors, counselors, etc. 

may forfeit charters or revoke licenses for fraudulent reports, etc. 

may revoke license or authority as penalty for rebating, etc. 

hearing, notice, review . 

may revoke license or authority for misrepresentation or twisting. 

hearing, notice, review ... 

after notice of violation to examine foreign company . 

penalty for refusal to exhibit books, etc. 

affidavit filed with, for indemnity in unauthorized company. 

tax paid to, on premium . 

examination by, of mutual life and casualty companies. 

filing of new articles with, upon reorganization of life or casualty company... 

casualty companies to secure certificate of authority from . 

paid up capital required . 

annual statement, reserves, liabilities, impairment . 

when to cancel authority of .. 

computation of reserve fund of, by .. 

of unsettled claims of employer’s liability companies. 

to approve bonds of secretary and treasurer of . 

annual official valuation of policies by, compensation, etc. 

may vary standards, value policies in groups, etc.. 


Sections 

28 

28 

29 

29 

30 

31 

32 
32 
34 
34 

38 

39 
39 

41 

. 42, 302 

42 
42 
49 
49 
49 

51 

52 

54 

55 
55 
57 
57 
57 

57 

58 
58 
61 
62 
62 

13-14 

64 

64 

64 

65 
65 
65 
67 
67 
69 

69 

70 

70 

71 
71 

74 

75 
75 

77 
84 
87 
89 
92 
95 
95 
97 
100 
100 
101 
106-9 
' 112 

115 
117 

116 
117 
122 
122 
128 
128 

132 

133 

135 

136 

137 
137 
137 
137 
179 
139 
139 






















































































INDEX. 


209 


COMMISSIONER OF INSURANCE.—Con. Sections 

form of life policy filed with . 151 

in case of disapproval, review . . . 151 

may revoke company’s authority for not attaching- application. 156 

approval of form of health and accident policies by . 157 

to approve form of certain supplemental contracts . 167 

casualty companies to furnish sworn proof of agreements received, etc., to.... 179 

custodian of funds of, to certify sum in trust to . 179 

order of, to state treasurer to pay over reserve, etc., fund of dissolved casualty 

company . 186 

transfer, etc., of assets, etc., to authorize companies only . 187 

order of, to pay over reserve fund of casualty company upon insolvency. 188 

when to furnish fraternal benefit society with preliminary certificate. 201 

when, may issue certificate of authority to fraternal benefit society. 201 

information submitted to, by fraternal benefit society precedent to business.... 201 

articles of fraternal benefit society filed with. 201 

certified copies of rules, form of certificates, constitution, applications, etc. 201 

authority of, to examine fraternal benefit society during organization. 201 

fraternal benefit society to file amendments of articles with. 202 

when operative . 202 

filing with, of contract of merger or transfer by fraternal benefit society. 203 

sworn statement of financial condition . 203 

examination and approval by . 203 

may not disclose, if not approved . 203 

approval by, of merger, etc., of fraternal benefit societies. 204 

fee paid to, for license or renewal by fraternal benefit societies. 207 

foreign societies . 208 

duty of, upon refusal to license or revocation of authority of foreign fraternal 

benefit society . 205 

action reviewable . 208 

to be appointed attorney for service of process by fraternal benefit societies.. 206 

duty, when process served upon . 209 

filing with, of annual and valuation reports by fraternal benefit society. 215 

when, may institute proceedings for dissolution of fraternal benefit society.... 216 

foreign societies . 216 

examination of domestic fraternal benefit societies by . 218 

duty of, when fraternal benefit society exceeding powers, etc. 218 

examination by, of foreign fraternal benefit societies. 220 

adverse publications by, concerning fraternal benefit societies. 221 

may require information to determine exemption from provisions governing 

fraternal benefit societies . 223 

petition to, for increase, etc., of capital stock by fire, marine, etc., companies 231 

final approval by, date of effect . 231 

to calculate reinsurance reserve for fire and fire marine companies..... 234 

reinsurance by Are and marine companies in companies not authorized by, 

annual sworn statement to, of reinsurance by fire or marine companies. 235 

filed and open to inspection . 235 

annual examination of fire insurance companies by . 238 

requisition by, to supply deficiency in assets of fire insurance company. -38 

call on stockholders, when made, amount, etc. 239 

when, to publish notice of failure of fire companies to meet deficiency in assets 238 
procedure by, when assets of mutual fire company insufficient to justify con- 

tinud>nc6 ....... •. ....... • ^40 

may authorize’mutual'fire companies to transact business on stock plan. 241 

filing with, and approval by, of form of average or pro rata clause. 254 

may revoke authority of fire company violating chapter provisions relative to 
contracts ••••••••••••••••••••••••••••••••••••••••••••••••••••••••********** • 

approval by,’ of ’additional hazards that may be covered by automobile insur- 

ance .. £5 

mutual companies .••••■•.. “XX 

notice given, of increase of capital stock by automobile insurance company.... 260 

duty of, upon impairment of capital of ... ••••••••;• .:. 

judgment of, as to sufficiency of premiums of employer s liability companies- 292 

duty as to filing and approving proposed premiums, etc., of..... -9b 

employer’s liability company to file classification of risks, premiums, etc., with -99 

unfair discrimination . 

uniform deviation . . . AO ""o 

member of anti-discrimination commission .... ;••••• ..••••.* 9Y6 

declaration filed with, by subscribers to reciprocal or inter-insurance contract 30 ,j 

filing of instrument concerning service of process ...... 

statement of maximum indemnity on single risk filed with, by reciprocals. 307 

when, to issue certificate of authority to attorney for reciprocals . ^ 

duty^^^approving and’fliing’arti’cVes' of general mutual companies. 318 

when, to issue license to general mutual companies ..... ••••• 

order from, to relieve assessment to restore assets of general mutual company 3-i 

election to adopt general mutual law approved and filed by ... 3du 

to approve and file form of policy of general mutual companies.... 331 

duty of, relative to admittance of foreign general mutual companies. 333 

attorney for service of process in cases under act authorizing surety company 

surety company to file certified copy of charter with . 34| 

to file application for authority to do business . :••••• • • .. 

to file statement concerning capital, investments, premiums, etc. 3 1 

similar annual, describing securities deposited, etc. 





































































210 


INDEX. 


COMMISSIONER OF INSURANCE.—Con. Sections 

certificate of authority, when issued to, by . 342-43 

filing of annual statement, a condition precedent to renewal. 348 

fraternal benefit society to make separate financial statement of whole family 

protection to . 352 

member of commission for approval of sprinkler heads . 362 

to provide for insurance of state property .. 398 

service of process upon, as attorney for insurance companies . 369 

service in duplicate . 370 

annual report by companies to, used in determining corporate tax. 419 

COMPACTS: 

by fire companies, prohibited . 33 

foreign company, to accompany application for admittance . 67 

how certified . 67 

preventing open competition, prohibited . 77-8 

by agents . 79 

business in violation, unlawful . 80 

conditions and restrictions imposed on life companies doing business under.... 174 

COMPANY: 


word, substituted for “insurer” in standard health and accident policy. 

word, defined as used in chapter relative to fire contracts. 

COMPANY AGENT: 

who deemed, in controversy between company and assured . 

COMPANY EXPERIENCE: 

premiums, dividends, etc., of employer’s liability company fixed in accordance 

with . 

COMPANY INSPECTORS: 

employer’s liability, access to premises . 

COMPANY LIABILITY: 

unlawful for fire company to limit, by requiring certain amount of insurance.. 
COMPANY NAME: 

adoption of . 

COMPANY’S OPTIONS: 

under standard fire policy . 

COMPENSATION: 

of clerks in insurance department. 

of assistant actuaries and examiners . 

of special deputies, counsel, etc., in liquidation proceedings . 

of expert, assistant and clerks of rating division . 

certain, non-resident agent not to receive . 

for making annual official valuation of life policies. 

of officers, trustees and directors of life companies. 

COMPETITION: 

agreements by foreign companies preventing open, prohibited . 

by agents . 

business in violation, unlawful . 

COMPUTATION: 

of tax paid by foreign companies . 

annual statement containing data . 

of taxable premiums of general mutual companies. 

in case of deposit premiums . 

of taxable property of insurance companies . 

CONCEALMENT: 

of facts, forfeiture of franchise or license for. 

CONDUCTORS: 

railway, incorporation of companies to insure ... 

.capital stock required . 

casualty company may provide indemnity for loss of position of railway.! 

conditions precedent to commencing business, proof required. 

CONSOLIDATION: 

or reinsurance of outstanding risks . 

petition to commissioner, what to set forth .... j 

approval by stockholders or members . 

final approval by commissioner of contract . 

delivery of securities on deposit . 

. companies exempted ..... 

and mergers of fraternal benefit society . 

CONSTABLE: 

service of subpoena compelling attendance of witnesses. 

CONSTITUTION: 


not to be referenced in life policy unless attached . 

when portion of, not to be made part of health and accident policy.... 
certified copies of, of fraternal benefit society filed with commissioner. 

power of fraternal benefit society to make, amend, etc. 

and laws, foreign fraternal benefit society to file . 

fraternal benefit society may provide against waiver of, and laws. 

amendments to, of fraternal benefit society, certified to commissioner.. 

prima facie evidence of adoption .'. 

CONTINGENT ASSETS: 

what valuation report of fraternal benefit society to show as. 

CONTINGENT LIABILITIES: 

what valuation report of fraternal benefit society to show as. 

of reciprocal insurers subject to examination by commissioner. 

CONTINGENT MUTUAL LIABILITY": 

fixed in by-laws and policies of employer’s liability company . 

available for payment of any claim. 


159 

246 


173 


295 

297 

255 

63 

247 

5 

5 

26 

30 

88 

139 

142 


77-8 

79 

80 

83 

84 
329 
329 
419 

112 

143 

144 

178 

179 


65 

65 

65 

65 

65 

66 
203-5 

287 

146 

161 

201 

201 

208 

212 

214 

214 

215 

215 

309 

293 

295 

































































INDEX. 


211 


CONTINGENT PREMIUMS: Sections 

general mutual policy to provide for, amount, etc. 324 

CONTRACTS: 

that insurance be placed in particular companies, prohibited. 36 

of consolidation or reinsurance, approval by stockholders, etc. 65 

final approval by commissioner . 65 

delivery of securities on deposit . 65 

with members, reserve or mortality funds, other use than as prescribed in, 

unlawful . 113 

anti-rebating provisions .. 115 

life policy to contain entire. 146 

form of, in health and accident policy . 159 

changes in, provision relative to, in standard health and accident policy. 159 

business involving, for payment of annuities, etc., deemed life insurance. 174 

fraternal benefit member not to acquire individual right in funds unless in.... 198 

of merger or transfer by fraternal benefit societies, contents, etc..'. 203 

commissioner may not disclose if, not approved .:. 203 

continuance of, of foreign fraternal benefit societies whose authority revoked, 

etc. 208 


foreign fraternal benefit society to file, what must show . 

duty of commissioner when fraternal benefit society is not carrying out, in good 

faith ... 

of re-insurance, certain, exempted from provisions governing fraternal benefit 

societies .. 

by fire insurance company, void after first notice of failure to supply assets... 

fire insurance, chapter relative to . 

when held made within state . 

by unauthorized companies, void .. 

when other, of insurance, voids standard fire policy. 

fire, containing provisions contrary to law.•.•••.•;. 

of insurance, when officer, etc., of farmers’ mutual has no personal liability on 

reciprocal or interinsurance, authority for exchange of . 

who may execute . 

right to exchange, incidental to corporate purposes . 

provisions of law to which subject . 

power of general mutual companies to make . 

may make or accept reinsurance . 

CONTRADICTORY PROVISIONS: 

health and accident policy not to contain . 

CONTRIBUTIONS': (See Assessments, Premiums.) 

for political purposes unlawful, penalty .*. 

upon children’s death benefit by fraternals, how based, interest standard, etc... 

surplus in excess of reserve and other liabilities . 

CO-OPERATIVE AND MUTUAL BENEFICIARY SOCIETIES: 

service of process upon . 

CO-OPERATIVE ASSESSMENT COMPANIES: 

qualifications required of directors of . 

CO-OPERATIVE CASUALTY INSURANCE COMPANIES: 

chapter relative to . 

CO-OPERATIVE INSURANCE COMPANIES: 

section relative to consolidation or reinsurance not to apply to. 

to attach application to policy on request . 

penalty for non-compliance ... 

CO-OPERATIVE LIFE AND HEALTH AND ACCIDENT COMPANIES: 

provisions of sub-division concerning agents to apply to. 

fraternal beneficiary societies excepted . 

CO-OPERATIVE MUTUAL LIFE INSURANCE COMPANIES: 

unlawful to use reserve or mortality funds otherwise than prescribed. 

CO-OPERATIVE PLAN: 

casualty insurance upon, who may incorporate . 

classes of insurance that may be carried on ... 

conditions precedent to commencing business, proof required. 

CO-PARTNERSHIPS: . , , ., . 

blanket policies issued to, exempted from certain health and accident provisions 
CORN HUSKERS AND SHREDDERS: 

threshers’ mutuals may insure.. 


208 


218 

223 

238 

242 

242 

243 
247 
256 
268 

303 

304 
310 
314 
320 
320 

161 

123 

350 

350 


369 

59 


177-89 


66 

155 

156 


94 

94 

113 

177 

178 

179 

167 


CORPORATE BODIES: 

companies formed under act deemed . 

CORPORATE EXISTENCE: 

what prima facie evidence of . 

term of . 

renewal of, fee, etc. .•••••• . 

what prima facie evidence of _ extension of. 

continuance of, expiring by limitation . 

renewal term and fee .. • • • .. 

at expiration of, officers to continue as trustees.. 

dividends not to be declared in anticipation of 
coninuance of, antedating insurance code . 


53 

54 

56 

57 
57 
57 

57 

58 
58 

338 


CORPORATE NAME: 

contained in articles . 

mutuals . 

of foreign company . 

of fraternal benefit society ..• • • • • 

fire insurance companies to conduct business. unuOi 
set up in articles of general mutual companies • • • 


and head policies with- 


47 

47 

81 

201 

236 

316 






























































212 


INDEX. 


CORPORATE POWERS: 

manner in which, are to be exercised contained in articles . 

of general mutual insurance companies . 

CORPORATE RIGHTS: 

forfeiture of, by Are insurance companies for unlawful dividends. 

to include right to exchange reciprocal or inter-insurance contracts. 

CORPORATE SHARES: 

may be attached or taken in execution . 

CORPORATION: 

suits at law may be maintained against ... 

word, substituted for “insurer” in standard health and accident policy........ 

blanket policies issued to, exempted from certain health and accident provisions 

may participate as members of farmers’ mutuals .... 

share or interest of stockholder in, may be attached or taken in execution.... 

garnishment of, provisions governing . 

fees, etc. .. 

insurance, "taxation of property of, how computed . 

exemption to amount of specific tax paid. 

CORPORATORS: 

of fire, marine, automobile, etc., companies, liability of, until capital paid in.. 

names, etc., of, set up in articles of general mutual companies. 

COST OF INSURANCE: 

designated, in valuation of fraternal benefit certificates on accumulation basis 
charge for, according to experience, etc. 

COSTS: 

assessments by mutual fire, etc., companies to be lien to amount of notes, and 

interest ..... 

recovery of, for attachment to compel attendance of witnesses. 

COUNSEL: 

commissioner may employ, in liquidation proceedings . 

COUNSELORS: 

license required, fee .. 

application, form of . 

refusal to gran,t, or revocation of . 

hearing and review by court . 

penalty for violation . 

COUNTERSIGNING: 

of policies of general mutual companies, law applicable to. 

when law not applicable . 

COUNTIES: 

when mutual company may insure real or personal property in adjoining. 

COUNTY, BONDS: 

fraternal benefit society may invest funds in . 

COUNTY BUILDINGS: 

when, to be insured, in whose name. 

in case of damage, who to collect . 


Sections 

47 

320 

228 

310 

371 


53 

159 

107 

208 

371 

377-8 

407-18 

419 

419 

230 

310 


217 

217 


280 

288 


20 


106 

107 

108 
108 
109 

332 

332 


281 

199 


395 

390 


COUNTY CLERK: 

certified copy of articles of association filed with. 

amendments to articles filed with . 52 

certification of articles by, as evidence of corporate existence. 54 

copy of resolution renewing corporate existence filed with . 57 

recorded at expense of company . 57 

filing of new articles with, upon reorganization of life or casualty company.... 134 


COUNTY TAX : 

extent of exemption of fraternal benefit society from. 224 

COUNTY TREASURY: 

payment of penalties collected, into . 12G 

CREDIT INSURANCE: 

certificate of authority to transact .<. 135 

paid up capital required . 136 

annual statement, reserves, liabilities, impairment . .137 

CREDIT INSURANCE OR GUARANTY: 

incorporation of companies . 131 

CREDITORS: 

husband or father may insure life free from claims of. 169 

extent that wife may insure life of husband free from claims of. 170 

liability of stockholders to, for unlawful dividends by fire insurance company. 228 
CROSS-EXAMINATION: 

by opposite party of witnesses touching adjustment of loss by mutual fire, 

etc., companies . 286 

CURRENCY: 

not covered by standard fire policy .;. 247 

CUSTODIAN: 

of funds of casualty company to certify sum in trust to commissioner. 179 

CYCLONES: 

incorporation of mutuals to insure against . 267 


DAMAGES: 

witness refusing to attend examination liable to costs and. 288 

DAMAGE TO PROPERTY: 

insurance on automobiles against hazards of loss by legal liability for. 226 

DATING BACK: 

life policy not to contain provision allowing .:. 149 

DAUGHTER-IN-LAW: 

may be beneficiary of fraternal benefit member . 195 




















































INDEX. 


213 


DEATH; Sections 

filling of vacancy in office of commissioner of insurance occasioned by. 2 

incorporation of companies insuring funeral benefit at. 131 

accident or, by, incorporation of companies to insure railway employes against 143 

capital stock required . 144 

bodily injury or, by accident and disability insurance by sickness, by general 

mutual company . 320 

bodily injury or, by accident, liability insurance against, by general mutual 

company . 320 

disability or, by accident, casualty companies may provide indemnity for. 178 

conditions precedent to commencing business, proof required . 179 

fraternal beneficiary obtains no vested right until, of member. 195 

DEATH BENEFITS: 

casualty company of religious denomination may pay sick, funeral and. 178 

conditions precedent to commencing business, proof required. 179 

fraternal benefit society shall provide for . 194 

payment, etc., of, by fraternal benefit society while organizing, how condi¬ 
tioned . 201 

licensing of fraternal benefit societies not paying sick or . 223 

payment of, officer, etc., of supreme body not individually liable for.. 211 

employers may incorporate against liability for . 290 

or annunity, for children between two and eighteen years, fraternal benefits 

may provide . 349 

DEATH BENEFIT CONTRIBUTIONS: 

for whole family protection, how based . 350 

DEATH CERTIFICATES: 

or certified copies of, made prima facie evidence for all purposes of facts 
recorded . 421 


DEBTS: 

companies may hold real estate conveyed in satisfaction of . 

or liability of member, benefit of fraternal society not liable to process for.... 

of fire, marine, automobile, etc., companies, liability of trustees, etc., for. 

what not considered as . 

evidences of, not covered by standard fire policy . 

DECLARATION: 

filing of, by subscribers to reciprocal or inter-insurance contract . 

what to set forth . 

of instrument concerning service of process . 


DECREES: 

real estate acquired by, period company may hold. 

DEEDS : 

not covered by standard fire policy . 

DEFERRED PAYMENTS: 

of claims of fraternal benefit society, considered fixed liability. 

present value of future payments . 

fund maintained to pay ... 

DEFICIENCY: . 

provision to meet, in funds of fraternal benefit societies. 

financial condition of fraternal benefit society, how maintained in respect of 

degree of . ; .•..;. 

in net annual deposits, provision relating to reciprocal insurance . 

in assets of life companies, notice given, business suspended . 


DELEGATES: 

of fraternal benefit society not to vote by proxy . 

DELINQUENT TAXES: 

of foreign companies, how collected . 

per diem penalty . 

DEPENDENT PERSONS: 

certain, may be beneficiaries of fraternal benefit member.. 

DEPOSIT: 

security, required of foreign life and casualty companies . 

monthly payment premium plan . 

when deposit not required ... 

security, by foreign fire, or fire and marine companies. 

security, by foreign Lloyds . 

approval by commissioner .. •••.•*.-............. - • ••• •••••• 

security, of domestic fire or life company desiring* to do foreign business, 

where made . 

security, of life and casualty companies: 

amount, etc.. ••••••; . 

additional, for general indemnity and surety bonding business. 

depreciation of securities . 1Q1 

collection of dividends on, during solvency .■ w± » 

sale of, to satisfy judgment . 

upon reorganization of . 

by life companies, a condition precedent . 

by automobile insurance companies ..• • .. 

of general mutual companies organized in foreign countries . 

required of surety companies : . •••••; . 

by companies under investigation or prohibition . 

permission to withdraw surplus . 

retaliatory provisions concerning . 

or investment of trust fund of casualty company . •••••••• .\ * 

of surety companies, statement describing, filed annually with commissionei.. 


55 

213 

230 

230 

247 


305 

305 

300 


55 

247 

198 

198 

198 

215 


210 

308 

139 


192 


85 

80 


195 


71 

71 

71 

74 

75 
75 

127 

131 

131 

132 

133 

133 

134 
174 
202 
333 
351 

17 

17 

18 
181 
343 






























































214 


INDEX. 


DEPOSIT NOTES: . Sectl< $S 

acceptance of, by mutual Are, marine, automobile, etc., companies. 

when accepted as capital stock ... 9 ‘ 

of mutual fire companies, provisions concerning... ooq 

when insufficient to cover losses . 

DEPUTY COMMISSIONERS OF INSURANCE: 

appointment, designation, qualifications, oath of office. jj 

salaries of ••••»••••••••••••••••••••••••••••••••••••************************* 

traveling and other expenses of, how audited, etc. 1 ~ 

authority to examine insurance company books, etc.. ±* 

may examine companies respecting conditions precedent to commencing busi- 

ness ... ; . Iq 

examiners or special examiners . 


DESCRIPTION: 

of property, may be printed on face of fire policy . 

DEVIATION: 

uniform, fire companies to notify commissioner of .....•..,•••••* ’ 

from classifications and schedules filed with commissioner by employer s lia¬ 
bility company . 

DIES: 

when not covered by standard fire policy . 

DIRECTORS: 

commissioner of insurance not to be . 

power of, or trustees to make by-laws . 

qualifications required of . 

call of special meetings by ..... 

and officers, joint liability of, for misrepresentation of capital stock. 

misrepresentation and twisting by, penalty .. 

of life companies, salary, etc., of, how authorized, etc. 

pensions not to be granted to .*. 

or trustees of casualty company, when and how chosen, term. 

for first year ... 

names stated in articles of fratenral benefit society.... 

liability of, of fire company for additional losses upon certain new risks. 

DIRECTORS AND OFFICERS: 

number of, articles to contain . 

manner of electing, quorum, vacancies . 

DISABILITY BENEFITS: 

fraternal benefit society may provide for temporary or permanent. 

as result of disease, accident or old age . 

period of old age .... 

fraternal benefit members not required to pass additional medical examination 

for . 

payment, etc., of, by fraternal benefit society while organizing, how conditioned 

net contributions for, of fraternal benefit societies kept in separate fund. 

when separation not required ... 

payment of, officer, etc., of supreme body^not individually liable for. 

employers may incorporate against liability for . 

DISABILITY BY SICKNESSS: 

casualty company may provide indemnity for . 

by particular religious denominations .. 

conditions precedent to commencing business, proof required . 

DISABILITY INSURANCE : 

general mutual companies may do, hazards covered . 

DISABILITY OR DEATH BY ACCIDENT: 

casualty companies may provide indemnity for ... 

conditions precedent to commencing business, proof required. 

DISABILITY PAYMENTS: 

periodical, provisions relative to, in standard health and accident policy. 

DISBURSEMENTS: 

of domestic life companies to be by voucher . 

affidavit if voucher cannot be obtained ... 

of emergency or surplus fund of fraternal benefit society. 

DISCLOSURE: „ ^ 

commissioner restrained from, of unapproved contract of merger, etc., of fra¬ 
ternal benefit society . 

DISCONTINUANCE : 

of business for one year by domestic fraternal benefit society, voids charter... 
DISCRIMINATION: 

in rates by fire companies prohibited . 

members of commission to determine . 

how may not be removed . 

life companies not to make, between white and colored persons. 

penalty on company, officer or agent. 

unfair, in classification of premiums, etc., by employer’s liability companies... 

anti-discrimination commission created to determine, hearings, etc. ... 

DISSOLUTION: 

liquidation and, of domestic companies .. 

transfer or reinsurance of risks of casualty company shall act as. 

when liability to cease, etc. 

transfer, etc., to be to authorized company only.. 

when commissioner may institute proceedings for, of fraternal benefit society 

foreign societies . 

of fraternal benefit societies . 


248 

41 

301 


247 


1 

51 

59 

60 
111 
116 
142 
142 
180 
180 
201 
240 

47 

47 

194 

194 

194 


196 

201 

215 

215 

211 

290 

178 

178 

179 

320 

178 

179 


159 

141 

141 

198 


203 


201 

40 

42 

42 

175 

175 

300 

302 

22 

186 

186 

187 

216 

216 

218-19 


































































INDEX. 


215 


DISTRICT AGENT: Q .. 0 

defined . Sections 

non-resident, restricted co 

license required, unlawful to act without . so o‘> 

DISTRICT TAX: 99 

DIVIDENDS exemption of fraternal benefit society from . 224 


not to be declared in anticipation of termination of existence. 

commissioner may enjoin attempted . 

when court may not order .' 

misrepresentation in estimating future, on poiicy, penaity ..................... 

collection of, on securities deposited by life and casualty companies. 

payment of, by fire insurance companies . 

made contrary to provisions, subjects to forfeiture of corporate rights. 

of employer s liability companies, how fixed and determined . 

not effective until filed and approved by commissioner. 

on expiring policies of employer’s liability companies. 

DOCUMENTS: 

no person excused from producing, etc.., in proceedings for violations. 

books, papers and, of casualty company, where kept . 

DOMESTIC INSURANCE COMPANIES: (See under various kinds of insurance 
as classified.) 

DOMESTIC SOCIETIES: 

certain, granted certain exemption under code. 

DUES: (See Assessments, Premiums.) 

casualty* policy not to be cancelled for non-payment of, without notice. 

affidavit, prima facie evidence of notice. 

DUPLICATE TAX RECEIPTS: 

for foreign companies . 


58 

58 

58 

116 

133 

228 

228 

294 

295 
294 

124 

181 


129 

185 

185 

87 


E. 

EARTHQUAKE: 

insurance by general mutual company . 

ELECTION: 

manner of, of directors and officers contained in articles. 

and qualification of officers, casualty company to furnish to commissioner of.. 

of representatives of supreme governing body of fraternal benefit society. 

of officers, etc., following organization of fraternal benefit society. 

ELECTIONS, POLITICAL: 

contributions to, unlawful, penalty . 

ELECTIVE MEMBERS: 

of supreme governing body of fraternal benefit society, how and when elected 
ELEVATORS : 

millers’ mutuals may insure, against fire or lightning. 

insurance against accident, etc., to, by mutual insurance companies. 

EMBEZZLEMENT : 


by agents, penalty . 

sale, etc., of certain securities in custody of state, deemed. 

EMERGENCY FUND: 

of casualty company, with income to be trust fund. 

how deposited or invested . 

casualty company call for assessment to contain correct statement of. 
return of, by state treasurer upon dissolution of casualty company.... 

transfer, etc., to authorized companies only . 

of casualty company, disposition of, upon insolvency. 

of fraternal benefit society, how held, invested, etc. 

EMPLOYER’S LIABILITY: 

policy, exempted from certain health and accident provisions. 

EMPLOYER’S LIABILITY INSURANCE: 

admittance of foreign mutuals to do . 

certificate of authority to transact . 

paid up capital required, securities deposited. 

> annual statement, reserves, liabilities, impairment . 

EMPLOYER’S LIABILITY INSURANCE COMPANIES: 

who may incorporate, purpose . 

articles of association of, what to set forth . 

directors to determine amount of premiums and probable risks . 

may prescribe how and when premiums paid . 

shall annually call for required payment of premiums. 

contingent mutual liability of . 

what available for payment of claims against . 

dividends on expiring policies of, how fixed, etc.... 

directors to make rules, etc., for prevention of injuries. 

withdrawal privileges of members of . ; . 

to file with commissioner, classification of risks, normal premiums, etc. 

unfair discrimination . 

uniform deviation ... 

authority of, to exchange reciprocal or inter-insurance contracts. 

ENDORSEMENT: 

of policies of unauthorized fire companies, penalty for. 

modification of standard fire policy by . 

ENDORSEMENTS AND ATTACHED PAPERS: 

standard health and accident policy to include. 

ENDOWMENT PRELIMINARY TERM POLICY: 

reserve required . 


320 


47 

179 

192 

201 

123 

192 


270 

320 

119 

140 

181 

181 

183 

186 

187 

188 
198 

167 

72 

135 

136 

137 

290 

291 

292 
292 

292 

293 
295 
295 

297 

298 

299 

300 

301 
303 

245 

248 


159 


150 

































































216 


INDEX. 


ENDOWMENTS: „ 4 . , , 15 - Q . 011T , Qnfl „ Sections 

business involving guaranty, etc., for payment of, deemed life insurance . 

ENGINEERS: ... 143 

railway, incorporation of companies to insure . 444 

„„„„*,S? ltaI St ° Ck requirecl .Sections 

KNGINKS i • oofj 

accidents to, insurance against, by general mutual companies. 

N< number^six, E death benefit contributions for whole family protection based on.. 350 

life policy must contain provision that policy constitutes .j ° 

contained in standard health and accident policy . 

EQUITY COURT: .. .. .. 58 

control of, over trustees of expired corporation . 22 

when may not order dividends ... 

on application for health and accident insurance, certain, a misdemeanor. R>4 

^^when fraternal benefit member may make, his beneficiary ......... • ••••••••••• ?, 2 4 

child’s, continuation of certificate for benefit of, under whole family protection oo4 

certified‘copies of agreement between fraternal benefit society and member, ^ 

prima facie, certificate of authority of fraternal benefit society. 

effect of certified copy of license of fraternal benefit, society as. ••■•••••• . 401 

prima facie, certificates of death made, for all purpose of facts lecoided. 

EXAMINATION: , 12 

of insurance companies, report made, etc. A. 

of rating bureaus, by commissioner . * 

of foreign company previous to admittance . ‘ 

of foreign companies subsequent to admittance . 

may revoke certificate upon refusal to allow ..•••.. • • • • • .. 

of foreign company notices for not doing* business through licensed agent. 

of insured, provision relative to, in standard health and accident policy. - • 

medical, prerequisite to membership, in fraternal benefit society. 

of fraternal benefit society during organization by commissioner. 

of fraternal benefit societies by commissioner . 

expense, how paid . •••••••••• . 220 

foreign societies, what may accept in lieu of . * 

adverse publications prohibited during, etc.•. •••; . 

of business affairs, assets, etc., of reciprocal insurers by commissioner. 

EXAMINATION FEES: , , _ , R 

how certified, rendered, collected and funded . ” 

for examining foreign companies ...... • • :••• *v . ,.4 

paid by companies to attorney general for examination of aitides, etc. 

EXAMINERS: .... r, 

appointment by commissioner of insurance..... . .. 

traveling and other expenses of, how audited, etc.. ® 

authority to examine insurance company books, etc. . 

of fraternal benefit society, commissioner may employ. -10 

foreign societies .. 

EXCEPTED PROPERTY: 0 ._ 

provisions concerning, in standard fire policy . * /±< 

EXCEPTIONS AND BENEFITS: . , t 

prominence of printing, on health and accident policy . 100 

EXCESS PREMIUM: 047 

conditions concerning refund of, in standard fire policy. 

EXCHANGE: „ ft „ 

of reciprocal or inter-insurance contracts . *Yn 

right declared incidental to corporate purposes .. 

certain acts of attorney in soliciting, etc., unlawful. 

EXECUTION: , oon 

issue of, for assessments of mutual fire insurance company. 

authority for, of reciprocal contracts of insurance. 

corporate shares may be taken in . ~Xr 

copy of, Avhere left ..'■ 5 X 2 

purchaser of shares entitled to certificate, when . 

EXECUTIVE OFFICER: . ..... RQ Qn 

of company, agent’s license issued only on requisition of. ^ on 

delegation of authority . 

when constituted members of mutual fire insurance companies.. 

EXEMPTION: (See under various fraternal and religious societies.) 

of fraternal benefit societies from other than chapter provisions. 193 

certain, of fraternal benefit societies from taxation .. . . ^34 

of reciprocal or inter-insurance contracts from certain law provisions. 314 

EXPENDITURES: ... 

of domestic life companies to be by voucher . 

affidavit if voucher cannot be obtained . 

EXPENSES: 3 ... 

derivation of fraternal benefit fund from which, paid . l9o 

certain funds of fraternal benefit societies not to be used for.... -00 

of commissioner, deputies, etc., in examining companies, etc., how collected, 

etc .,... I 

foreign companies . 0 































































INDEX. 


217 


EXPLOSION: Sections 

insurance against . 

steam boiler and fly wheel excepted . 226 

insurance on automobiles against hazards of . . *>26 

conditions concerning, in standard fire policy .247 

of, or accident to, steam boilers, insurance against, by general mutual com¬ 
panies . 320 

of aircraft, etc., insurance against, by'general mutual law320 
flre ensuing, insurance against, by general mutual company... 320 

conditions concerning, in standard fire policy . 247 

EXTENDED PROTECTION: . 

when fraternal benefit' society may grant, to members . 394 

limit in value . iqj 

EXTENSION: . 

of corporate life, fee, etc. r ,7 

EXTRA SERVICE: ‘ ./. 

insurance companies prohibited from paying for . 7 

insurance commissioner prohibited from accepting pay for. 7 

* * 


F. 

FACE OF POLICY: 

fire, printing that may appear on . 

FACE VALUE: 

fraternal benefit society may pay member all or part of, of certificate as pro¬ 
vided . 

FACTORIES: 

conditions concerning, in standard fire policy . 

owners or operators of, may incorporate manufacturer’s mutuals. 

FALL OF BUILDING : 

conditions concerning, in standard fire policy . 

FALSE ADVERTISING: 

concerning capital stock, etc., penalty . 

by fire insurance companies prohibited . 

FALSE REPORT: 

penalty on physician for, on applicant for life and casualty insurance . 

FALSE STATEMENTS: 

penalty for, leading to belief that one is a public adjuster. 

in health and accident application, when not a bar to recovery. 

by fraternal benefit societies, officer, member, etc., penalty . 

in regard to insurance companies prohibited ....... 

FALSE SWEARING: 

deemed perjury... 

provision concerning, in standard fire policy . 

FAMILY HISTORY: 

attached to certain policies on request .. 

penalty for non-compliance . 

FARMERS’ MUTUALS : 

organization of . 

temporary absence of teams, wagons, etc., policies of, construed to cover. 

in adjoining counties . 

liability of members to be stated in articles of association of . 

FARM LOAN BONDS: 

investment of capital and funds in . 

FARM PRODUCTS: 

mutual hail companies may insure ... 

FARM PROPERTY: 

insurance on, by farmers’ mutuals . 

limit of risk on property other than . 

FATHER: 

may insure life for benefit of children . 

minor may insure for benefit of, etc. 

FATHER-IN-LAW: 

may be beneficiary of fraternal benefit member . 

FEED MILLS: 

owners or operators of, may incorporate millers’ mutual . 

portable, threshers’ mutual may insure . 

FEES: 

examination, how amount certified, collected and funded. 

foreign companies . ; . 

commissioner of insurance not to retain, as perquisites . 

official, and charges turned over to state treasurer . 

receipts taken ... 

filing, payable by company organized outside of state . 

for certified copies made by commissioner of insurance . 

disposition of, collected by commissioner of insurance. 

of fire insurance rater . 

license, of rating bureau . 

companies to pay filing, to commissioner of insurance. 

agent’s license, foreign company to pay . 

for solicitor’s license . 

for license of auditor, abstractor, counselor or analyst . 

for license or renewal of, of fraternal benefit society . 

foreign societies ...• •. 

for service of subpoena compelling attendance of witnesses. 

annual license, paid by attorney for reciprocal insurance. 


24S 


194 

247 

271 

247 

111 

23 (J 

170 

105 

102 

225 

390 

125 

247 

155 

150 


268 

277 

281 

279 

01 

270 

268 

208 


309 

172 


195 


270 


0 

8 


30 

19 

20 
34 
34 
04 
83 
91 

300 

207 

20S 

287 

313 































































218 


INDEX. 


FEES .—Con. 

admission, for foreign general mutual companies . 

etc., of corporations ... 

soldiers, etc., entitled to transcripts pertaining to annuities, etc., without 
FIDELITY INSURANCE COMPANIES: 

purposes for which, may incorporate . 

FIDUCIARY: 

embezzlement by agent as, penalty . 

charging by, of expense of procuring sureties . 


Sections 
333 
. 407-18 

420 

131 


119 

339-48 


FILING: 

with commissioner of form of health and accident policy. 

of contract of merger or transfer by fraternal benefit societies. 

of certified copies, of amendments to constitution, etc., of fraternal benefit 

society .... 

of statement of reinsurance effected by fire pr marine companies. 

of form of average or pro rata clauses with commissioner.... 

of proposed premiums, dividends, etc., of employer’s liability company with 

commissioner . 

of declaration by subscribers to reciprocal or inter-insurance contract. 

of instrument concerning service of process. 

of articles of general mutual companies by commissioner. 

with commissioner of election to adopt provisions of general mutual law. 

of form of policy by general mutual companies . 

of papers, etc., by foreign general mutual companies . 


157 

203 

214 

235 

254 


290 

305 

300 

318 

330 

331 
333 


FILING BACK: 


of policy of fire insurance company, what to appear on. 
FILING FEE: 

paid by companies to commissioner . 


230 

04 


FINANCIAL CONDITION: 


penalty for misrepresentation of capital stock or . Ill 

sworn statement of, filed with commissioner together with contract of fraternal 

merger, etc. 203 

of fraternal benefit societies, how maintained in respect of degree of de¬ 
ficiency . 210 


FINANCIAL STATEMENT: 

when publicity of, of fraternal benefit society prohibited. 221 

annual, attorney for reciprocals to file with commissioner . 309 

license fee to accompany •. 313 

of foreign general mutual company, a condition to admittance . 333 

FINES: 

foreign companies, retaliatory provisions concerning . 18 


FIRE: 

insurance against . 220 

insurance on automobiles against hazards of. 220 

automobile insurance against . 259 

mutual companies . 203 

incorporation of mutuals to insure against . 207 

or lightning, farmers’ mutual insurance against... 208 

mercantile mutuals may insure risks of. 209 

millers’ mutuals may insure against . 270 

manufacturers’ mutuals may insure against . 271 

threshers’ mutuals may insure against . 272 

retail lumber dealers’ mutuals may insure against . 273 

shoe dealers’ mutuals may insure against . 274 

policy of farmers’ mutual covers damage by, to teams, etc., temporarily absent 277 

in adjoining counties . 281 

FIRE AND MARINE INSURANCE COMPANIES: 

foreign, conditions of admittance . 74 

foreign, to file undertaking with commissioner . 77 

compacts by companies prohibited ... 78 

by agents . 79 

business in violation, unlawful . 80 

FIRE DEPARTMENT OR SALVAGE CORPS TAXES: 

foreign companies, computation of, under retaliatory provision. 18 

FIRE DEPARTMENTS: 

blanket policies issued to, exempted from certain health and accident provisions 167 
FIRE INSURANCE: 

rating bureaus for, commissioner to establish . 30 

contracts of, upon property in state, held made within state...'.. 242 

by unauthorized companies, void . 243 

contracts, company defined, as used in chapter relative to. 246 

general mutual company may do, hazards covered . 320 

FIRE INSURANCE COMPANIES: 

rating bureaus, admittance to membership in . 33 

may maintain own rating bureau, how restricted . 33 

deviation . 41 

compacts by, prohibited . 35 

in application for license, to state membership in rate making bureaus . 37 

not to fix or charge discriminatory rates. 40 

to file deviation of rates with commissioner . 41 

penalty on, for violation of chapter relative to rating bureaus. 43 

subject to review . 43 

not charging advance premium, exempt from chapter IV, part one. 44 

certain, exempt from chapter relative to rating bureaus. 44 

surcharges by, prohibited . 45 

foreign mutuals, admittance to take risks on mills, factories. 73 




































































INDEX. 


219 


FIRE INSURANCE COMPANIES.—Con 

foreign, conditions of admittance . 

to file undertaking with commissioner . 

compacts by companies prohibited. 

by agents .. 

business in violation, unlawful’... ... 

tax levied against . 

unauthorized, license required to procure policies of... 

affidavit required of applicant .” 

licensing of adjusters of .. 

domestic, desiring to do foreign business, additional deposit, where made 

provisions governing . 

number may incorporate, hazards may cover . 

maximum single risk . 

foreign companies . 

reinsurance not included in determining risk . 

stock companies, capital stock required . 

how increased . 

mutual companies, agreements required, cash and notes . 

notes, when payable . 

when accepted as capital stock . 

payment of dividends from surplus profits of . 

reservation of unearned premiums, etc. 

stock companies, increase or decrease of capital stock. 

reinsurance of risks by. 

sale of goods, wares, merchandise, etc., by . 

reinsurance reserve for, calculation of . 

unauthorized reinsurance by, prohibited . 

shall conduct business under corporate name . 

annual examination of, by commissioner . 

foreign companies . 

contracts by unauthorized, void . 

penaly on authorized, for issuing policies . 

penalty on solicitor, etc., for taking application for unauthorized. 

permissible exceptions from standard Are policy . 

mutual, certain, exempt from provisions of standard Are policy. 

provisions by, requiring certain amount of insurance, prohibited. 

contrary provisions void . 

penalty for violation of chapter concerning contracts . 

FIRE MARINE INSURANCE COMPANIES: 

reinsurance reserve for, calculation of . 

FIRE PROTECTION: 

for townships .. 

FIRE RATES: 

authority of commissioner to supervise and regulate, on Michigan risks. 

hearings . 

compacts relative to, prohibited . 

FIRE WORKS: 

conditions concerning, in standard Are policy. 

FIRST DEPUTY: 

commissioner of insurance, appointment, etc. 

FIXED LIABILITIES: 

what considered as, of fraternal beneAt societies. 

present value of future payments . 

fund maintained to pay . 

FLOOD: 

insurance by general mutual company . 

FLOURING MILLS: 

owners or operators of, may incorporate millers’ mutuals . 

FLY WHEELS: 

incorporation of companies insuring against loss, etc., by breakage of . 

insurance against accident, etc., to, by general mutual companies. 

FOREIGN AND DOMESTIC INSURANCE COMPANIES: 

actions against, how commenced and tried . 

service of process upon . 

FOREIGN AND DOMESTIC SURETY AND BONDING COMPANIES: 

actions against, how commenced and tried. 

FOREIGN AUTOMOBILE INSURANCE COMPANIES: 

admission of .. 

tax levied against . 

FOREIGN CASUALTY INSURANCE COMPANIES: 

amount of security deposit required of . 

when deposit not required . 

FOREIGN CO-OPERATIVE LIFE INSURANCE COMPANIES: 

valuation required of, condition of admittance . 

• reserves required . 

FOREIGN CORPORATIONS: , 

neglect, etc., of officer served to Ale disclosure to writ of garnishment.. 

judgment on default for amount and costs . 

notice of judgment obtained, when given .. 

FOREIGN COUNTRIES: 

corporations of, considered corporations of what state,. 

FOREIGN FIRE INSURANCE COMPANIES: 

conditions of admittance .... 

to Ale undertaking with commissioner. 

compacts by companies prohibited . 


Sections 

74 

77 

78 

79 

80 
83 

100 

100 

102-4 

127 

127 

220 

227 

227 


jrii 

227 

227 

227 

228 
228 

231 

232 

233 

234 

235 
230 
238 
238 

243 

244 

245 

248 

249 
255 

250 
257 

234 

359-61 


32 

32 

35 

247 

5 

198 

198 

198 

320 

270 

131 

320 


367 

309 


367 

76 

83 


71 

71 


82 

82 


i 

377 

377 


18 


74 
77 

75 








































































220 


INDEX. 


FOREIGN FIRE INSURANCE COMPANIES.—Con. Sections 

by agents . 79 

business in violation, unlawful . 80 

tax levied against . 83 

examination of, by commissioner ... 238 

FOREIGN FIRE AND MARINE INSURANCE COMPANIES: 

conditions of admittance .;. 74 

to file undertaking with commissioner . 77 

compacts by companies prohibited . 7S 

by agents . 79 

business in violation, unlawful . 80 

FOREIGN FRATERNAL BENEFIT SOCIETIES: 


to provide for meeting mortuary obligations, how valued, etc. 

examination of, by commissioner . 

FOREIGN INSURANCE COMPANIES: (See under various kinds of insurance 
as classified.) 

authority of commissioner of insurance to examine . 

per diem and expenses for examining . 

penalty on, for not making annual statement, etc. 

publication of investigation of, where had .. 

of foreign country, considered corporations of what state . 

retaliatory provisions concerning, as to securities, taxes, fines, etc. 

revocation of authority for non-payment . 

admission of . 

capital and assets required of . 

investment of .. 

supervision and examination of . 

not to do business unauthorized by certificate . 

appointment of agent or attorney for service of process. 

stipulation, service on commissioner or deputy . 

copy of appointment, where filed . 

on monthly payment premium plan, security deposit required of. 

foreign country, security deposit required of.. 

mutuals, admittance of, to do employer’s liability insurance. 

mutual liability companies . 

any mutual, admitted to take risks on retail implements, hardware. 

mutual fire, admitted to take risks on mills, factories. 

solvency a condition to admittance of . 

name not to be same or similar to company organized or admitted. 

taxation of ... 

certain failures not to relieve company . 

to pay agent’s license fee ... 

to file annual statement showing data necessary to compute tax. 

certain failures not to relieve company . 

taxes on premiums of, how computed . 

business of, to be transacted through duly licensed agents . 

exception, reinsurance . 

notice of violation, revocation, readmittance . 

health and accident, reciprocal provisions as to what policj^ may contain. 

general mutuals, admission of ... 

excepted from act requiring filing of annual report with secretary of state.... 
FOREIGN LIFE AND CASUALTY COMPANIES: 

foreign mutuals subject to operation provisions of, transacting liability. 

on co-operative assessment plan, reciprocal provision as to admittance. 

valuation required of co-operative life companies. 

FOREIGN LIFE INSURANCE COMPANIES: 


198 

220 


8 

8 

14 

37 
18 

38 
38 

(57-87 

(58 

(58 

(59 

(59 

70 

70 

70 

71 
71 

79 


i .1 

73 

81 

81 

83 

84 

83 

84 
84 
87 

320 
3 20 
123 
3(5(5 
333 
414 


TZ 

82 

82 


amount of security deposit required of . 71 

when deposit not required . 71 

annual valuation of policies of. 139 

proceeding when other state does not reciprocate . 139 

FOREIGN LIFE POLICIES: 


reciprocal provisions concerning approval of form of. 

FOREIGN LLOYDS: 

admission of . 

FOREIGN MARINE AND INLAND INSURANCE COMPANIES: 

to file undertaking with commissioner . 

compacts by companies, prohibited . 

by agents . 

business in violation, unlawful . 

FOREIGN MARINE INSURANCE COMPANIES: 

tax levied against ...; 

FOREIGN MUTUAL WORKMEN’S COMPENSATION INSURANCE COM¬ 
PANIES : 

annual tax levied against . 

FOREIGN SURETY COMPANIES: 

company requirements, capital, service of process, etc. 

FOREST FIRES: 

provision concerning, in permissible modifications of standard fire policy. 

FORFEITURE: 

life policy not to contain certain provision relative to. 

FORGERY: 


352 


<o 

77 

78 

79 

80 


S3 


83 

341 

248 

149 


of insurance policy with intent to injure or defraud. 393 

utterance of . 394 

FORMS: 


commissioner may require filing of, by rating bureaus . 39 

of articles of association, prescribed by commissioner . 48 






































































INDEX. 


221 


FORMS .—Con. Sections 

of amendments to articles . ©ecuona 

blank, articles of association . «o 

for amendments . !!.!!!!!!!!!!!!!!!!!!!!!!!! . <i 2 

of w? P u pl i cat ! on ^ or a d m ittance of foreign companies. (57 

which foreign companies use for annual statement . 84 

of application for agent’s or solicitor’s license.* 97 

of apphcation for license of auditors, abstractors, counselors, analysts. 107 

approval ot, of health and accident policies by commissioner. 157 

relative to contract in health and accident policy . 159 

foi submitting proof of loss, under standard health and accident policy. 159 

tor proof of loss, furnishing of, by insurer not waiver of company rights. 1(53 

< l ert , aln supplemental contracts to be approved by commissioner. 167 

°I Il a Vf- rna * benefit certificates, certified copies of, filed with commissioner.... 201 

of Michigan standard fire policy . 247 

of application for co-insurance clause .... 250 

of application for average or pro rata clause .. 253 

form of clause . . 0*4 

FRANCHISE : . . . 


forfeiture of, for making fraudulent reports, etc. 

FRATERNAL BENEFICIARY SOCIETIES: 

what may credit as contingent assets, etc. 

domestic, liquidation or dissolution of . . 

real estate holdings by . '!!!!!!!!!!!!!!!!!! 

section relative to consolidation or reinsurance not to apply to. 

foreign co-operative life companies, to have valuation and reserve as required 
of. 

provisions of sub-division concerning agents, not to appiy to !!!!!!!!!!!...... 

penalty on, for concealing facts in reports, etc... 

unlawful to use reserve or mortality funds otherwise than prescribed.....!.... 

to attach application to policy on request. 

penalty for non-compliance . !..!..[.. 

exempted from certain health and accident provisions ... .. 

defined . 

chapter relative to .. 

governed by, and exempted from other provisions . 

shall provide for death benefits ... 

may provide for permanent or temporary disability benefits ...!. 

as result of disease, accident or old age . 

period of old age, monuments, last sickness, funeral benefits. 

when, may grant paid up protection or withdrawal equity to members. 

death benefits confined to certain beneficiaries . 

qualification for membership . 

may accept general or social members . 

certificates issued by, what to provide for . 

what constitutes agreement between member and.. . . 

of voluntary association . 

how received in evidence .. 

provision by, for meeting mortuary obligations, how valued . 

foreign societies, how valued . 

funds of, how held, invested, etc. 

foreign societies . 

distribution of funds of . 

who may organize, articles, what to state . 

information submitted to commissioner by, precedent to business... 

already organized not required to reincorporate . 

how may amend articles, how and when filed, when operative. 

merger or consolidation of, how effected and approved. 

annual license required of, term, how renewed, fee, etc. 

certified copy of, made evidence ... 

foreign societies . 

foreign, how admitted . 

to appoint commissioner as attorney for service of process . 

service of process upon . 

meetings of supreme governing body, where held . 

location of principal office . 

waiver of provisions of constitution and laws of . 

benefits of, not liable to attachment, garnishment, etc. 

to file certified copies of amendments to constitution, etc., with commissioner 

annual and valuation reports filed with commissioner by . 

test of solvency of . 

provision to meet deficiency in funds of . 

when commissioner may institute proceedings for dissolution of . 

foreign societies ... 

provisions to insure future security of . 

table showing credits to members, filed and furnished by .'.. 

statement in lieu of . 

valuation of certificates of, on tabular basis . 

valuation of certificates of, on accumulation basis . 

winding up affairs of, notice given . 

when receiver may be appointed for . 

domestic, examination of, by commissioner . 

foreign .. 

foreign, revocation of license of, notice, review, etc.. 

certain, not paying death or sick benefits, how may be licensed. 

taxation of .. 


112 


21 

22 

55 

66 

82 

94 

112 

113 

155 

156 
167 
190 

190-225 

193 

194 
194 
194 
194 

194 

195 

196 
196 

197 
197 
197 

197 

198 

198 
198-9 

199 

200 
201 
201 
202 
202 
203 
207 

207 

208 
208 

209 
369 

210 
210 
212 

213 

214 

215 
215 

215 

216 
216 
216 
217 
217 
217 

217 

218 
218 
218 
220 
222 

223 

224 





















































































222 


INDEX. 


FRATERNAL BENEFICIARY SOCIETIES.—Con. Sections 

on lodge plan, may provide whole family protection. 349 

doing whole family protection to make separate financial statement in annual 

report . 352 

service of process upon . 369 

prohibiting false statements in regard to .. 390 

FRATERNAL CO-OPERATIVE ASSOCIATIONS: 

actions against, how commenced and tried . 3G7 

FRATERNAL PLAN: 

extent of application of sub-section relative to policy provisions to companies 

on . 153 

FRAUD: 

provision concerning, in standard fire policy. 247 

FRAUDULENT BUSINESS; 

by fraternal benefit society, duty of commissioner . 218 

FRAUDULENT STATEMENTS: 

concealing facts, forfeiture of franchise or license for . 112 

FRAUDULENT STOCK: 

insurance, felony to knowingly issue . 383 

penalty for knowingly selling . 384 

FREE AND ACCEPTED MASONS: 

chapter relative to co-operative casualty companies not to apply to . 189 

FREIGHTS: 

insurance on, inland or ocean marine ... 22G 

FRONT AND BACK: 

description printed on, of health and accident policy. 158 

FROST AND SNOW: 

insurance against damage by, by general mutual company . 320 

FRUITS: 

mutual hail companies may insure . 27G 

FUNDING OF MONEYS: 

collected by commissioner of insurance. 20 

FUNDS: 

investment of, at expiration of corpor-ate life . 58 

investment of capital and .... 61 

custodian of, of casualty company to certify sum in trust to commissioner. 179 

of fraternal benefit society from which benefits and expenses paid, how derived 198 

how invested . 199 

foreign societies . 199 

distribution of . 200 

transfer of, how effected, approved, etc. 203 

accounting of certain reserve or credits of . 217 

tax exempt . 224 

requirement as to investment of, of foreign societies . 208 

FUNERAL BENEFIT: 

incorporation of companies insuring, at death . 131 

capital stock required . 132 

casualty company may provide for, limit . 178 

by particular religious denominations, limit . 178 

for sole purpose of, limit . 178 

conditions precedent to commencing business, proof required. 179 

last sickness and, fraternal benefit society may provide for. 194 

FUTURE SECURITY: 

of fraternal benefit societies, provisions to insure . 216 


G. 

GARNISHMENT: 

benefits, etc., of fraternal benefit society not liable to. 213 

of corporations, provisions governing . 377-8 

GASOLINE: 

conditions concerning, in standard fire policy .'. 247 

GENERAL AGENCY: 

name of, may appear on filing back of policy of fire insurance company. 236 

not to give appearance of independent insuring organization. 236 

GENERAL AGENTS: 

of foreign fire, etc., deemed legal and proper officer . 74 

defined . 88 

non-resident, restricted . 88 

license required, unlawful to act without . 90, 92 

term of, renewal . 99 

GENERAL FUND EXPENSE: 

fraternal benefit societies may provide for, under whole family protection. 353 

GENERAL MUTUAL COMPANIES: 

authority to incorporate . 315 

adoption of articles . 316 

of name •. 317 

filing, etc., of . 318 

legal existence, date of . 319 

adoption of by-laws . 319 

when insurance may be put in force . 319 

fire insurance by, hazards covered . 320 

liability insurance, hazards covered . 320 

disability insurance, hazards covered . 320 

automobile insurance, hazards covered . 320 

steam boiler insurance, hazards covered . 320 

use and occupancy insurance, hazards covered ... 320 






























































INDEX. 


223 


GENERAL, MUTUAL COMPANIES .—Con. 

miscellaneous insurance, hazards covered . 

conditions governing issue of license to, by commissioner. 

who may become members ... 

number of votes member entitled to . 

maximum liability of members, where stated . 

policies of, to provide for contingent premiums .. 

reinsurance by . 

investment of assets of ... 

separate maintenance of reserves . 

assessment to restore assets . 

advances of money by directors, etc. 

taxable premiums, what shall be . 

resolution adopting provisions of, by directors . 

provisions may insert in policies . 

provisions applicable to delivery, etc., of policies through resident agent 

admission of foreign companies . 

exemption from other laws . 

GENERAL REGULATIONS: 

relative to incorporation of companies ... 

GOODS: 

insurance on, against fire, etc. 

against inland or ocean marine risks . 

sale, etc., of, by fire, marine, automobile, etc., companies. 

mercantile mutuals may insure, against fire or lightning. 

GOVERNMENT BONDS: 

U. S., fraternal benefit society may invest funds in. 

GOVERNMENTAL SECURITIES: 

investment of capital and funds in . 

approval by securities commission and commissioner . 

GOVERNOR: 

appointment of commissioner of insurance by . 

appointment by, to fill vacancy in office of commissioner of insurance.... 
annual report of commissioner of insurance addressed to . 

suoiqo^S 

"life policy must contain provision for a . 

GRADING: 

of actuaries and examiners in insurance department. 


Sections 

320 

321 

322 

323 

324 

324 

325 

325 

326 

327 

328 

329 

330 

331 

332 

333 

334 


45 

226 

226 

233 

269 


199 


61 

61 

1 

o 

9 

148 


GRAIN SEPARATORS: 

threshers’ mutuals may insure . 272 

GRANTS: 

of paid up protection or withdrawal equities to members of fraternal benefit 

society . 194 

GRIST MILLS: 

owners or operators of, may incorporate millers’ mutuals . 270 

GROSS PREMIUMS: 

old line legal reserve life companies to pay tax on. 83 

GUARANTEED CAPITAL STOCK: 

may retire, upon reorganization of life or casualty company. 134 

GUARANTY: 

business involving, for payment of annuities, etc., deemed life insurance. 174 


H. 

HAIL: 

incorporation of mutuals to insure against . 

property that may be insured against, by mutual hail companies. 

insurance by general mutual company . 

HARNESS: 

temporarily absent, covered by policy of farmers’ mutuals. 

in adjoining counties . 

HAY PRESSING MACHINERY: 

threshers’ mutual may insure . 

HAZARDS : 

not covered by standard fire policy . 

when company not liable for increase of, under standard fire policy. 

HEALTH AND ACCIDENT INSURANCE: 

minors may contract for .... 

proviso, promissory notes in payment of premiums . 

HEALTH AND ACCIDENT INSURANCE COMPANIES: (See Casualty, or Life 
and Casualty Insurance Companies.) 

excepted from provisions authorizing reciprocal insurance . 

when indemnity against accident may be exchanged . 

HEALTH AND ACCIDENT POLICIES: 

form of, filed with and approved by commissioner. 

notice of non-approval, review . 

what must be expressed or stated in, before issued or delivered . 

standard provisions of ... 

optional standard provisions of . 

contradictory provisions prohibited . 

when false statement in application not bar to recovery.... 

what not waiver of insurer’s right in defense of claims under. 

application for, misdemeanor to alter, etc., without consent. 

issued in violation of chapter, how construed, etc. 

foreign, what may contain, reciprocal provision . 


267 

276 
320 

277 
281 


247 

247 

172 

172 


303 

303 


157 

157 

158 

159 

160 
161 
162 

163 

164 

165 

166 































































224 


INDEX. 


HEALTH INSURANCE: Sections 

certificate of authority to transact . 135 

paid up capital required, securities deposited . 136 

annual statement, reserves, liabilities, impairment . 137 

HEARINGS: 

granted company before filing report of its examination ... 12 

granted prior to change of fire rates by commissioner. 32 

to determine discrimination in fire rates . 42 

notice given . 42 

on revocation of agent’s license . 95 

on revocation of license of auditor, abstractor, counselor, etc. 108 

review by court . 108 

on forfeiture of franchise or license . 112 

notice of, on revocation of license, etc... 117 

by anti-cliscrimination commission relative to employer’s liability insurance... 302 

notice given, action to vacate order, answer, etc. 302 

HEIRS: 

when constituted members of mutual fire insurance company. 229 

HOLDER: 

of casualty policy, notice given, before cancellation for non-payment of dues, 

etc.'. 185 

affidavit prima facie evidence of . 185 

HOME OFFICE BUILDING: 

amount stock life insurance company may invest in. 55 

certificate of permission by commissioner . 55 

HOURS OF OPERATION: 

of factories, conditions concerning, in standard fire policy. 247 

HOUSEBREAKING: 

incorporation of companies to insure against . 131 

HOUSEHOLD FURNITURE: 

insurance on, against fire, etc. 226 

farmers’ mutuals may insure . 268 

HOUSES: 

insurance on, against fire, etc. 226 

farmers’ mutuals may insure ....; . 268 

HUSBAND: 

may insure life for benefit of wife . 169 

wife may cause to be insured the life of her. 169 

in case wife dies first . 169 

wife with assent, may insure life of, etc. 170 

extent of exemption from claims of creditors . 170 

death of wife before husband . 171 

minor may insure for benefit of, etc. 172 

may be beneficiary of fraternal benefit member. 195 


I. 

ILLUMINATING GAS: 

conditions concerning, in standard fire policy . 

IMPAIRMENT OF CAPITAL: 

stock company, liquidation proceedings because of . 

of casualty companies, cancellation of authority . 

of automobile insurance company, duty of commissioner upon. 

INCIDENTAL POWERS: 

of fraternal benefit society .. 

INCIDENTAL RIGHTS: 

of corporation to exchange reciprocal or inter-insurance contracts. 

of corporations to become members of mutual insurance companies. 

INCOMPETENCY: 

commissioner of insurance may be removed for... 

INCORPORATION: 

inability to meet requirements for, liquidation proceedings because of. 

general regulations relative to . 

companies not to take part in, of other companies for purposes of control. 

life companies, purposes . 

of plate glass insurance companies . 

of companies to examine, etc., titles to real and personal property. 

life and casualty companies may incorporate for certain combined purposes... 

of health and accident companies . 

of fidelity insurance companies, purposes . 

of sprinkler insurance companies . 

of automobile insurance companies..131, 

of surety companies, purposes . 

exception, marine risks . 

of companies insuring railway employes against loss of position, etc. 

capital stock required . 

provisions applicable to operation . 

of casualty insurance companies . 

classes of insurance that may be carried on . 

conditions precedent to commencing business, proof required . 

of fraternal benefit societies . 

of fire, marine, automobile and other insurance companies . 

of mutual automobile insurance companies . 

of mutuals to insure against fire, lightning, cyclones, hail, etc. 

of farmers’ mutuals . 

of millers’ mutuals ... 

of manufacturers’ mutuals . 


247 

23 

137 

261 

201 

310 

322 

1 


23 

46 

110 

131 

131 

131 

131 

131 

131 

131 

259 

131 

131 

143 

144 

145 

177 

178 

179 
201 
226 
263 

267 

268 

270 

271 




































































INDEX. 


225 


INCORPORATION .—Con. 

of threshers’ mutuals . 

of retail lumber dealers’ mutuals . ...!..!!.!.!!.. . 

of shoe dealers’ mutuals .. 

of mutual cyclone, windstorm and tornado companies . 

of mutual hail companies . 

of employer’s liability insurance companies . . 

of companies for mutual insurance . .!!!!!!.!!!!.!.....!!! 

INCR^A^R^F^APITAR°STC)CK ; ex ^ ens ^ on of existence und^r'insurance coci; 

of life and casualty companies on stock plan . 

of tire, marine, automobile, etc., companies .. 

when effective . ]. 

of automobile insurance company . .!!!!!!!!!!!! . 

notice given . 

INCREASE OF HAZARD: . 

when company not liable for, under standard fire policy . 

INCUMBRANCES: . 


conditions concerning, in standard fire policy . 

INDEBTEDNESS: . 

loan, life policy, how determined . 

INDEMNIFICATION: . 

of employer’s liability company against liability of withdrawing members 
INDEMNITY: 


Sections 

272 

273 

274 

275 

276 
290 
315 
338 

131 

231 

231 

260 

260 

247 

247 

154 

298 


procuring additional, in unauthorized companies .. 

affidavit filed with commissioner . ..!!!!!*!*** 

periodical payments of, provisions relative to, in standard health, etc., policy! 

no reduction in, by change of occupation, standard policy provision. 

optional standard provision limiting, of health and accident policy. 

provided by reciprocal or inter-insurance contracts . 

INDEMNITY PAYMENTS: 

provision relative to, in standard health and accident policy. 

INDEPENDENT INSURING ORGANIZATION: 

general agency of fire insurance company not to give appearance of. 

INDEPENDENT STATUTES: 

relating to insurance companies . 

INDIVIDUAL LIABILITY: 

officers, etc., of supreme, etc., body of fraternal benefit society have no. 

INDIVIDUAL RIGHTS: 

fraternal benefit member not to acquire, unless provided in contract . 

INDUSTRIAL ACCIDENT BOARD: 

petition to, for review of rules and regulations of employer’s liability company 
INDUSTRIAL POLICIES: 

extent of application of sub-section relative to policy provisions to. 

INJUNCTION: 

restraining company in liquidation proceedings . 

against fraternal benefit societies . 

INJURY: 

bodily, automobile insurance not to include loss by reason of . 

wilful, of insured live stock with intent to defraud deemed felony. 

INLAND MARINE INSURANCE: 

number may incorporate for . 

INLAND TRANSPORTATION: 

insurance against risks of, by general mutual company . 

INLAND TRIP RISK INSURANCE: 

calculation of reinsurance reserve of . 

INQUIRIES : 

of commissioner relative to doings, etc., of companies . 

commissioner may make, concerning rate making bureaus, etc. . 

INSERTION : 

on application for health and accident insurance, certain, a misdemeanor. 

INSOLVENCY: 

a condition warranting proceedings to liquidate. 

distribution of securities on deposit in case of . 

of casualtv company, disposition of reserve fund, etc., upon . 

INSOLVENCY PROCEEDINGS: 

^ower of commissioner in liquidation proceedings same as receiver in. 

accountability of receiver . 

INSPECTION: 

of rating bureaus by commissioner . 

of premises, right of access for, by employer’s liability company. 

right of, under steam boiler insurance by general mutual companies. 

INSTALLMENT PAYMENTS: 

life policy to contain table of ....... 

INSTALLMENTS: 

deferred payments of, of fraternal benefit society, considered fixed liability.... 

present value of future payments .... 

fund maintained to pay ... 

INSURABLE INTEREST: 

when person not having, may enforce health and accident policy. 

provisions concerning, in standard fire policy . 

INSURANCE: 

of state property . 

INSURANCE AGENTS AND ADJUSTERS: 

chapter relative to .. 

application of sub-division one, agents . 


128 

128 

159 

159 

160 
303 

159 

236 

237 

211 

198 

297 

153 

24 

218-19 

226 

391 

226 

320 

234 

14 

39 

164 

23 

133 

188 

28 

28 

39 

297 

320 

148 

198 

198 

19S 

169 

247 

396-405 

88, 109 
94 
























































226 


INDEX. 


INSURANCE AND ANNUITIES: „ , X1 1; ^ SeCU °1^ 

contracts may be issued providing for both, on same Iite. ^ 

deferred annuities . 

INSURANCE BROKERAGE: 93 

certain provision deemed not to authorize, business • •••. 

INSURANCE COMPANIES: (See under various kinds of insurance as classified.) 

commissioner of insurance not to be connected with affairs of. 

commissioner of insurance to certify expense of examining . g 

foreign companies .-... n 

annual statements of, when and where filed ... * 

organized outside of state, filing fee ... -<2 

to aid in examination of its affairs . .-••••••: .,* . -10 

authority of commissioner of insurance to examine business and affairs or. 

may examine officers, etc., under oath ....• • *.. -to 

annual statement of, when deposited with commissioner of insurance. 

on form prescribed, what may include . i- 

form to be furnished company ....• • .. 

duty of, to reply to inquiries of commissioner relative to doings, etc. 

commissioner may examine, when condition suspected. 

power to revoke license . ^ 

domestic, liquidation, chapter applying .........:. fr 

not to make contract that insurance be placed in particular companies. 

certified copy of articles of association filed in office of ...... . ™ 

amendments to articles and certificate of approval returned to . oz 

real estate holdings by .. • . 

to pay filing fee of twenty-five dollars to commissioner. J" 

domestic mutuals, ten dollars . Vf 

examination fee to attorney general .*. 

funding of .,.... 

provisions concerning consolidation or reinsurance not applicable to ceitain... >n 

foreign or domestic, acquiring control of other companies, unlawful. 

penalty on, for concealing facts in reports, etc. ........ D- 

unauthorized, procuring indemnity in, to file affidavit with commissioner...... 1-8 

certain, to file statement of shares issued, etc., with secretary of state annually 38o 

prohibiting false statements in regard to . 390 

fjl of 5 •• ...t • 

INSURANCE DEPARTMENT: ‘ 

establishment of, general duties . 

assignment of office rooms to .• • • • • • • • • • ■ • • • • • • • •. . no 

appropriation for, for years ending June 30, 19-3 and 19-4 . 4—--4 

INSURANCE RATING COMMISSION: 

who to compose, hearings, etc. 4z 

INSURANCE SOCIETIES: . . on 

certain, exempted from certain provisions of code. 139 

INSURED: .. 

word, how substituted in standard health and accident policy . lo9 

INSURER: . , , . . . . ... , ... 

other insurance by same, optional standard provision of health and accident 

policy .• • • • •. . 160 

obligation of, how governed as to health and accident policies issued in viola¬ 
tion . ......... . 165 

when, to refund overcharge for employer’s liability insurance . 302 

penalty for burning insured property with intent to injure . 39- 

INSURRECTION: . 

hazard not covered by standard fire policy . 247 

INTEREST: 

unpaid, reserved from dividends of fire insurance companies . -31 

assessments by mutual fire, etc., companies to be lien to amount of notes, 

INTEREST ASSUMPTION: . 

provision for fraternal mortuary obligations based upon standard table wuth.. 198 
INTER-INSURANCE CONTRACTS: 

chapter relative to . 303 

INVASION: 

hazard not covered by standard fire policy. -4< 

INVENTORY: x J ^ 

of damaged and undamaged property, under standard fire policy. 24 < 

INVESTMENT: , , lt , 

of funds for security of policy holders at expiration of corporate life. 58 

of capital and funds ... 61 

of capital and assets of foreign companies . 68 

of trust fund of casualty company . % . 181 

of emergency or surplus fund of fraternal benefit society . 198-9 

foreign societies ... 199 

of assets of general mutual companies . 32o 

INVOICES: 

examination of, of insured, provided for in standard fire policy . -4< 

ITEMIZED REPORT: 

annual, of mutual fire, cyclone and hail companies . 284 

J. 

JEWELS: 

insurance on, inland or ocean marine . 226 

JOINT STOCK COMPANY: 

word "company” held to include, in chapter relative to fire contracts . 246 

JUDGE: 

of court of record, when to select umpire under standard fire policy. 247* 































































INDEX. 


227 


JUDGMENT: 

securities on deposit by foreign companies to satisfy . 

when deposit not required . 

sale of securities on deposit to satisfy .] 

of niortgage securities . . 

collection of, against life company discriminating between white and colored 
persons . 

JUDGMENT DEBTOR: . 


Sections 

71 

71 

133 

133 

175 


when purchaser of shares of, entitled to dividends . 

JUNIOR ORDER OF UNITED AMERICAN MECHANICS: 

exempted from certain provisions of code . 

JURISD XClUSiVe ° f beneficiary degree of national council .. 


in actions concerning discrimination in Are ratings . 

TTT ^ f T , s1 i its to vaca te. etc., orders of anti-discrimination commission 
JUSTICE OF PEACE: 

required to issue subpoenas to compel attendance of witnesses .. 

service of . 

when may issue attachment .. 


376 


129 

129 


42 

302 


2,SO 

287 

288 


K. 

KILLING: 

wilful, of insured livestock with intent to defraud deemed felony. 391 

KNIGHTS OF MACCABEES: 

chapter relative to co-operative casualty companies not to apply to. JS9 

KNIGHTS OF PYTHIAS: 

exempted from certain provisions of code . 129 

exclusive of insurance department of supreme lodge .-. 129 

chapter relative to co-operative casualty companies not to apply to. 189 

exempt from certain provisions governing fraternal benefit societies. 223 


L. 

LABOR ORGANIZATIONS: 

certain, granted certain exemption under code ... 

exempted from certain provisions governing fraternal benefit societies. 

LANGUAGE: (See Policies.) 

and form of policy of general mutual companies.. 

filing and approval by commissioner . 

LAPSE: 

life policy may contain safeguard against . 

LARCENY: 

by embezzlement, certain acts of agents deemed, penalty . 

LAST SICKNESS: 

and funeral benefits, casualty, etc., companies may provide for. 

fraternal benefit society may provide for ... 

LEGAL EXISTENCE: 

corporate, of general mutual companies, when to begin . 

LEGAL MINIMUM VALUATION: 

of fraternal benefit certificates, what shall be . 

LEGISLATURE: 

governor to report to, reasons for removal of commissioner of insurance . 

LETTERHEADS: 

fire insurance companies not to issue false representations by . 

LETTERING: 

in advertisement to give prominence to fire company assuming risk. 

LIABILITIES: 

receiver not permitted to increase, of company during liquidation . 

of company not affected by extension of corporate existence . 

for unsettled claims against employer’s liability companies, how computed.... 

levy of assessments to cover, of mutual fire, cyclone and hail companies. 

excessive loss . 

penalty on officer for not making .. 

stated, fraternal benefit society may incur while organizing . 

of members, benefit of fraternal society not liable to process for. 

of heirs, etc., of member of mutual fire insurance company . 

of trustees, etc., of fire, marine, automobile, etc., companies until capital paid 

in ..•. 

of person issuing contracts of fire insurance after notice of failure to supply 

assets . 

unlawful for fire company to limit, by requiring certain amount of insurance.. 

when officer, etc., of farmers’ mutual has no personal, on contracts... 

members, to be stated in articles of mutual fire, cyclone and hail companies... 

w r hat not to exceed . 

employers may incorporate against, for payments for death or disability 

benefits, etc.... 

contingent mutual, of employer’s liability company . 

indemnification of employer’s liability company against, of withdrawing mem¬ 
ber . 

when money advanced by director, etc., not against general mutual company.. 

for unearned portion of premiums, surety company to make statement of. 

LIABILITY AND COLLISION INSURANCE: 

on automobiles . 

n-iut.ual companies . 

LIABILITY INSURANCE: 

general mutual company may do, hazards covered . 


129 

223 

331 

331 

147 

119 

178 

194 

319 

215 

1 

236 

236 


29 

57 

137 

282 

282 

283 

201 

213 

229 

230 


238 

255 

26S 

279 

279 


290 

293 

298 

328 

341 


259 

263 


320 






















































228 


INDEX. 


LICENSE : 

rating bureau to secure . 

fire insurance rater to procure . ;•••• ..*•.'• 

to foreign life and casualty companies conditioned on deposit of securities. 

when deposit not required . 

of general, district, state or special agent . 

unlawful to act without . 

of agent, what to set forth, to whom issued, who designated, etc. 

of solicitor, fee . 

term of, renewal ... 

to agents, commissioner may refuse to issue . 

may revoke . . . 

required of agents not to apply to clerical help.. 

agent or solicitor, form of application for . 

term of, renewal ... 

required to procure policy of unauthorized fire company . 

affidavit that unable to otherwise procure . 

required of fire and compensation adjusters .. 

suspension or revocation of, notice, renewal . 

penalty ... 

required of insurance auditors, abstractors, counselors or analysts. 

revocation of, of foreign company for fraudulent reports, etc. 

hearing . 

revocation of. for rebating, etc. 

hearing, notice, review ... .. 

revocation for misrepresentation and twisting . 

hearing, notice, review .■..•. 

cancellation of, of foreign fraternal benefit society for failure to maintain 

condition ... : . 

suspension, etc., of, of foreign fraternal benefit society. 

revocation, notice, review, etc... 

when, issued by commissioner to general mutual companies. 

to transact business, when issued to foreign general mutual company. 

LICENSE FEES: (See Fees.) 

foreign companies, retaliatory provisions concerning . 

annual, paid by attorney for reciprocals upon filing annual report. 

LI EN : 

deposit notes of stockholder of mutual fire company to be, on premises.. 

on property insured, assessments for losses, etc., by mutual fire, etc., companies 
to be . 


Sections 

113 

34 

71 

71 

89 
92 

90 

91 
99 
95 
95 
90 
97 
99 

100 

100 

102 

103 

104 
100-9 

112 

112 

115 

117 

110 

117 


210 

220 

222 


321 

333 


18 

313 

229 

280 


LIFE: 

fraternal benefit society may 
of . 


issue benefit certificates for term less than whole 


LIFE AND CASUALTY INSURANCE: 

penalty on physician for false report on applicant for. 

LIFE AND CASUALTY INSURANCE COMPANIES: 

unauthorized business prohibited, penalty . 

reinsurance by ..•„. ; . 

number of applications required before commencing business. 

examination by attorney general and commissioner . 

additional deposit in case of depreciation . 

on stock plan, capital stock required . 

increase of .... ........ 

companies doing general indemnity and surety bonding business. 

on monthly premium payment plan, capital required...,. 

insuring a funeral benefit, capital required. 

capital stock required . 

reorganization of .'... 

may change mode of business, increase capital, etc. 

LIFE BENEFITS: 


must be distinctly stated . 

LIFE. HEALTH AND ACCIDENT INSURANCE COMPANIES: 

excepted from provisions authorizing reciprocal insurance . 

when indemnity against accident may be exchanged . 

LIFE INSURANCE: 


minors may contract for . ; .* 

proviso, promissory notes in payment of premiums .. 

excepted from risks that general mutual companies may insure. 

LIFE INSURANCE COMPANIES: . 

to finally pass on claim within six months after final proofs. 

provisions adopted by, prohibiting commencement of suit, not a bar. 

adjudication . ; . 

amount stock companies may invest in home office building. 

certificate of permission by commissioner . 

foreign, amount of security deposit required of . 

when deposit not required . 

old line legal reserve, tax levied against . 

licensing of auditors, abstractors, counselors, etc. 

domestic, desiring to do foreign business, additional deposit, where made- 

provisions governing .... 

contingencies which, may insure against, limited . 

purposes for which, may incorporate . 

annual valuation of policies, how determined, compensation . 

foreign companies .. . • • 

when assets deficient, notice given, business penalized. 

variation of standards of mortality and interest . 

valuation of policies in groups, approximations, etc. .. 


194 

170 

130 

131 
131 

131 

132 

131 

132 
132 
132 
132 
132 
134 
134 


171 


303 

303 

172 

172 

320 

53 

53 

53 

55 


71 

71 

83 

106-9 

127 

127 

131 

131 

139 

139 

139 

139 

139 











































































INDEX. 


229 


LIFE INSURANCE COMPANIES .—Con. Sections 

domestic, disbursements of $100 or more to be by voucher. 141 

when voucher cannot be obtained, affidavit .. 141 

salaries, compensation, etc., of officers, trustees and directors of. 142 

to be authorized by directors, period of agreement limited. 142 

renewal pommissions, etc., based on business . 142 

what deemed, conditions and restrictions imposed.. 114 

not to discriminate between white and colored persons . 175 

stock, deposit of securities required of, to govern automobile insurance company 262 

employes not required to take out policy in any particular. 387 

contracts so made declared void . 388 

agreements between employer and employe . 388 

penalty .*. 389 

LIFE INSURANCE CONTRACTS: 

chapter relative to .. 146 

LIFE OR CASUALTY INSURANCE COMPANIES: 

foreign, on co-operative assessment plan, reciprocal provision as to admission 82 

valuation required of co-operative life companies .. 82 


LIGHTNING : 

insurance against .;. 

conditions concerning, in standard fire policy . 

incorporation of mutuals to insure against . 

fire or damage by, farmers’ mutual insurance against . 

mercantile mutuals may insure risks of. 

millers’ mutuals may insure against . 

manufacturers’ mutuals may insure against . 

threshers’ mutuals may insure against . 

retail lumber dealers’ mutuals may insure against . 

shoe dealers’ mutuals may insure against.. 

loss by, of teams, etc., temporarily absent, covered by policy of farmers’ 

mutual . 

in adjoining counties . 

insurance by general mutual company . 


226 

247 

267 

268 

269 

270 

271 

272 

273 

274 


_ ( i 

281 

320 


LIGHTNING CLAUSE: 

may be added to fire policy 


248 


LIMITATION: 

of notice of claim of proof of loss, provisions under standard health and 

accident policy . : . ■•••••■•• 

of grants of paid up protection or withdrawal equities by fraternal benefit 

society . . ... 

of scope of beneficiaries by fraternal benefit society. 

age. for membership in fraternal benefit society ... 

as to amount recoverable on mutual automobile insurance policy. 

of risk by farmers’ mutual, on property other than fai'm property... 

certain, not to apply to mutual cyclone, windstorm and tornado companies.... 

of liability of member of mutual fire, cyclone and hail companies......... 

of property that may be insured by mutual fire, cyclone and hail companies.... 

maximum single risk of general mutual company. 

of premium under general mutual law, where expressed . 

of death benefits upon lives of children by fraternal benefits... 


159 

194 

195 

196 
265 
268 
268 
279 
281 
321 
324 
349 


LIMITATION OF ACTION: 

for recoverv of moneys paid to unauthorized life company or agent. 

LIMITED PAYMENT LIFE POLICY: 

reserve required . 

LIQUIDATION: 

and dissolution of domestic companies ....;. 

receiver not permitted to increase liabilities of company during. 

LIST: 

of losses to accompany execution for assessments of mutual fire insurance 

company. 

LIVESTOCK INSURANCE: 

certificate of authority to transact ... 

paid up capital required, securities deposited . 

annual statement, reserves, liabilities, impairment . 

LIVESTOCK INSURANCE COMPANIES: .... A A 3 * 

wilful injury or killing of livestock insured by, with intent to defraud. 

LLOYDS: 

foreign, admittance of, maximum single risk ..•. •_•••; .- 

word “company” held to include, in chapter relative to fire contracts . 

LOAN : 

life policy to contain provision relative to . 

deduction for debt . 

when failure to pay does not void policy .•... 

life policy not to contain certain provision for forfeiture for. 

indebtedness, life policies, how ascertained . 

LOAN VALUES: . . . 

table showing, life policy must contain provisions .. 

when failure to pay advance does not void policy ... 


I OCAL AGENTS * 

reinsurance of risks through resident agents without signing by, of file or 
marine companies ... 

LOC order I s ( {?ffiJlf provide benefits exclusively through granted certain .exemption.. 
certain, exempted from provisions governing fraternal benefit societies. 


LODGE SYSTEM: 

fraternal benefit societies defined 
societies deemed operating on ... 


174 

150 

22 

29 

226 

135 

136 

137 

391 


d> 

246 


148 

148 

148 

149 
154 


148 

148 

235 


129 

223 

190 

191 































































230 


INDEX. 


LOSS: Sections 

deposit notes when to remain as security for, of mutual fire companies. 229 

when insufficient to pay . 229 

settlement of, under unauthorized fire policy, penalty for. 245 

appraisal of, provisions for, under standard fire policy . 247 

duty of insured upon, under conditions in . 247 

proof of, provided for in . 247 

requirements in case of, under. 247 

when payable under . 247 

in excess, by mutual fire, etc., companies, may be carried forward. 282 

LOSS BY LEGAL LIABILITY: 

insurance on automobiles against hazards of, for damage to property. 22(5 

LOSSES: 


when heirs, etc., of member of mutual fire insurance company bound to pay... 

adjustment of, by directors of mutual fire insurance company. 

additional, accruing upon new risks taken after period of deficiency in assets 

of fire company .. 

liability of directors for . 

and expenses of mutual fire, cyclone and hail companies, assessments for. 

compelling attendance of witnesses touching adjustment, etc., of. 

LOSS OP POSITION: 

incorporation of companies to insure railway employes against, etc. 

capital stock required . 

casualty companies may provide indemnity for ... 

conditions precedent to commencing business, proof required. 

LOSS OR DAMAGE: 

sound value and, how determined under standard fire policy . 

LOSS RATIO: 


229 

229 


240 

240 

280 

280 


143 

144 

178 

179 

247 


under reciprocal insurance, not required in annual financial statement . 309 

LUMBER DEALERS’ MTJTUALS: 

retail, incorporation of . 073 

LUMBER YARDS: 

manufacturers’ mutuals may insure, against fire or lightning. 271 


M. 

MACHINERY: 

incorporation of companies insuring against loss, etc., by rupture of . 

to run flour mill, etc., millers’ mutual may insure . 

manufacturers’ mutuals may insure, against fire or lightning. 

MALFEASANCE IN OFFICE: 

commissioner of insurance may be removed for. 

MANAGERS : 

of foreign Are, etc., companies, deemed legal and proper officers . 

filing of consent . 

MANUFACTURED PRODUCTS : 

manufacturers’ mutuals may insure, against fire or lightning . 

MANUFACTURERS’ MUTUALS: 

incorporation of . 

amount of cash and notes required precedent to business . . 

liability of members of, to be stated in articles of association of. 

MANUFACTURING ESTABLISHMENTS : 

conditions concerning hours of operation of, in standard fire policy . 

MANUSCRIPTS: 

when not covered by standard fire policy . 

MARINE AND INLAND INSURANCE COMPANIES: 

foreign, to file undertaking with commissioner . 

compacts by companies prohibited .„•. 

by agents . 

business in violation, unlawful . 

MARINE INSURANCE COMPANIES: 

tax levied against . 

inland, number may incorporate, purposes, etc. . 

ocean . 

maximum single risk ... . 

foreign companies .. . 

reinsurance not included in determining risk ... 

stock companies, capital stock required . ..." 

how increased or decreased .. . . . . . . .227, 

mutual companies, agreements required, cash and notes .. .. . ..*. 

notes, when payable . 

when accepted as capital stock . . . 

reinsurance of risks by . 

sale of goods, wares, merchandise, etc., by . . 

calculation of reinsurance reserve for . . 

unauthorized reinsurance by, prohibited. 

MARINES: . 

A t°, without fee, of transcripts under seal, of insurance payments, etc. ... 

MASONS: 

grand or subordinate lodges of, exempted from certain provisions of code. 

from certain provisions governing fraternal benefit societies. 

MATURED LIABILITIES: 

fraternal benefit society held solvent when funds possessed are equal to, or in 

excess of . 

provision for deficiency . 

MAXIMUM ASSUMPTION: ‘ . 

on single risk by subscriber to reciprocal insurance . 


131 

270 

271 

1 

74 

74 

271 

271 

278 

279 

247 

247 

77 

78 

79 

80 


83 

220 

220 

227 

227 

227 

227 

231 
227 
227 
227 

232 

233 

234 

235 

420 


129 

223 


215 

215 


307 






























































INDEX. 


231 


MAXIMUM INDEMNITY: Sections 

statement of, on single risk of reciprocals filed with commissioner. 307 

MAXIMUM PREMIUM: 


payable by member of general mutual company expressed in policy or appli¬ 
cation ... 

what may be . 

MAXIMUM SINGLE RISK: 

foreign Lloyds . 

allowed fire, marine, automobile, etc., companies . 

foreign companies . 

reinsurance not included in determining risk .. 

of general mutual companies . 

MECHANICAL DRAWINGS: 

when not covered by standard, fire policy . 

MEDICAL EXAMINATION: 

when attached to certain policies on request .. 

penalty for non-compliance . 

prerequisite to membership in fraternal benefit society. 

beneficiary members not required to pass, for disability benefits. 

certain fraternal benefit societies exempt from provisions requiring. 

a condition precedent to issuance of children’s death benefit certificate. 

MEETINGS: 

of casualty company called to submit question of transfer, etc., of risks . 

notice given . 

transfer, etc., to be to authorized company only . 

of supreme governing body of fraternal benefit society, when held. 

where held . 

principal office where located . 

stockholder’s, to approve increase, etc., of stock of fire, marine, automobile, 

etc., companies . 

notice given . 


324 

324 

75 

227 

227 

227 

321 

247 


155 

150 

190 

190 

223 

350 

180 

180 

187 

192 

210 

210 

231 

231 


MEMBERS: 

of mutuals, notice given of meeting at which articles to be amended. 

may sue company if payment of claims withheld. 

renewal of corporate existence by vote of . 

notice given, of meetings . .••••. ... 

or stockholders, approval of contract of consolidation or reinsurance by. 

final approval by commissioner ... 

of casualty companies, what constitutes, privileges, etc. .. 

solicitation of, upon organization of fraternal benefit society. 

of mutual fire insurance company not required to pay more than whole amount 

of note . ; . 

who constituted, of mutual fire insurance company . 

corporations may participate as, of farmers’ mutuals ... 

of farmers’ mutuals, consent of, to insure certain risks in cities and villages.. 

of mutual fire, etc., companies, assessment of, for liabilities. 

penalty on officer for not making . 

annual report delivered to . 

penalty for not delivering . 

contingent mutual liability of, of employer’s liability company. 

assessment of, for losses and expenses .. 

expulsion of, for neglect to supply safety appliances . 

review of grievances by industrial accident board . 

withdrawal privileges of.--, . 

of anti-discrimination commission . 

of mutual insurance companies, who may become . 

number of votes entitled to . 

maximum premium payable by, of mutual insurance company. 

MEMBERSHIP: 

fire companies may be admitted to, in rating bureaus .. .. 

fire companies to state, in rating bureaus, when applying for license. 

terms and conditions of, stated in articles. 

mutuals, number of classes or divisions. 

qualifications for, in fraternal benefit society.... 

transfer of, of fraternal benefit society, how effected, approved, etc. 

fraternal benefit society of less than 400, duty of commissioner . 

MERCANTILE MUTUALS: 

incorporation of . •••••••.;•••••••• . 

liability of members to be stated in articles of association of . 

MERCHANDISE : 

insurance on, against fire, etc. 

inland or ocean marine .• • ••.. 

sale, etc., of, by fire, marine, automobile, etc., companies . 

farmers’ mutuals may insure . .•••••. . 

mercantile mutuals may insure, against fire or lightning . 

penalty for wilfully burning insured . 

MERGERS: . af 

certain, without approval, liquidation proceedings because of.... 

or consolidations by fraternal benefit societies, how effected, approved, etc. ... 

certificate of approval by supreme governing body . 

METHOD OF VALUATION: x . A1 

fraternal benefit society’s valuation report to set forth . 

MICHIGAN STANDARD POLICY: 

fire, form of .. 

policies on which, shall be printed . 

type, size of, used in printing . 


52 

53 
57 
00 
05 
05 

182 

201 


229 

229 

208 

208 

282 

283 

284 

285 

293 

294 
297 

297 

298 
302 

322 

323 

324 

33 

37 

47 

47 

190 

203 

218 

209 

279 

220 

220 

233 

208 

209 

392 


23 

203-5 

203 

215 

247 

248 
248 







































































232 


INDEX. 


MILITARY POWER: ~ _ 

„„hazard not covered by standard fire policy . 247 

incorporation of . 2 - 0 

agreements required precedent to business . 278 

MILLS- ^ y mern bers to be stated in articles of association of. 279 

MINIMUM ,0r operators 1Tia N incorporate manufacturers’ mutuals. 271 

net d SwS fixed , in provisions relating to reciprocal insurance 308 
required to be made up . 

MINORS . Sha11 be legal > of fraternal benefit certificates . 215 

MISLEADING a NAMEsf aIth 0r accident lnsurance . 172 

MISREP°RElE&TATloN : Under **"*'»' mutual laW . 317 

penalty for, by fraternal benefit society, officer, etc . . oo* 

^Provision concerning, in standard fire policy.... 0 I 7 

prohibited, penalty .*. 

on revocation, notice, review. 117 

MONETcONSIDEVATT 6 N P sf atiVe CaSUalty com P a ™es not to apply to. 189 

MONEYS’- must be expressed in health and accident policy . 158 

of foreign companies, collection of delinquent tax out of. 85 

per diem penalty . Sj. 

MOraL 0 YMEE?INGS dard *** P ° UCy !:!!!!!!!!!!!!!!!!!!!!!!!!!:!! ••••••••■•••• • 247 

operating on lodge system. !91 

c , om P anies . insuring on, security deposit required . 71 

MONUMENT? required of life and casualty companies on . !!!’.! 132 

MORTALi n TY b lND t INTEREST BASIsI f ° r - f ° r d6ceased "'embers. 194 

MOOTALITY b FUNDl° Clety S valuation report to set forth . 21.1 

MORTGAGE^ 1, than as prescribed in articles, etc., unlawful . 113 

MORTGAaE e iNTERESTS° idS standard fire pollcy . 217 

MORTGAGEl: C ° nCernlng - *" standard flre Policy ... 247 

investment ““c'ipfteMn Perlod . company may hold . 95 

MORTGAGE* SECURITIES^° m dlvidends dl ' e insurance companies".228 

on deposit, deemed in custody of state. 140 

MORTUARYPUND CUSt0dy deemed embezzlement, penalty’! ’.!'.!!!!!!!!!'.!!!!!!!!!! 140 

casualty company may provide in policv for . ici 

surplus moneys ..... .!.!!!!!!!!”! . isi 

frntf-ILf°K as ® assm f nt to contain correct statement of’!!.'!!!!!!!!’.'.!!! . 183 

MOEiffi Obligations^ used for expenses .$5 

fmterna^benefit society, provision for meeting, how valued, etc. 198 

MOTHER: ° ’ y . 198 

may insure for benefit of, etc. 17 o 

MOTORMEN ene ^ C ' ary fraternal benefit member. 195 

ra fiway casualty compan y may provide indemnity against loss of position by 178 

MUNICTPAL CORPORATIONS?° mmenCmS buslness ' proot required.. 170 

MUNKNPAL°SECURITIE S°' exampted from certain health and accident provisions 107 
investment of capital arid funds in . 

MUNICIPAL TAX: . 01 

^ent of exemption of fraternal benefit society from. 004 

MUTUAL ASSESSMENT COMPANIES: . 

qualifications required of directors of .. rn 

MUTUAL AUTOMOBILE INSURANCE COMPANIES •’. 

number of incorporators, hazards may cover ... o«*> 

agreements required before commencing . .. o «4 

articles of association . . r>A-- 

limit of single hazard of . . 5 rr 

MUTUAL BENEFIT INSURANCE COMPANIES’-.. 

to attach application to policy on request .. 1tV c 

penalty for non-compliance .’. ’. ikJ. 

actions against, how commenced and tried .....!. 307 






















































INDEX. 


233 


MUTUAL COMPANIES: Sections 

on assessment plan, information stated in articles . 47 

capital stock required of fire, marine, automobile, etc., insurance. 227 

stock company requirements . 227 

MUTUAL CYCLONE INSURANCE COMPANIES: 

limit of single hazard of . 355 

MUTUAL CYCLONE, WINDSTORM AND TORNADO COMPANIES: 

certain limitations concerning- risks not to apply to . 268 

incorporation of . 275 

of members of, to be stated in articles of association of . 279 

MUTUAL FIRE, CYCLONE AND HAIL INSURANCE COMPANIES: 

chapter relative to . 267 

levy of assessments to cover liabilities of, duty of' officers’ 282 

excessive loss . 282 

penalty on officer for not making ... 283 

secretary of, to deliver annual itemized report to members . 284 

penalty for not delivering. 285 

compelling attendance of witnesses before, touching adjustment, etc., of losses 286 

service of subpoenas . 287 

issue of attachment . 288 

MUTUAL FIRE INSURANCE COMPANIES: 

foreign, admittance to take risks on mills, factories. 73 

number may incorporate, hazards may cover . 226 

when may commence . 227 

examination of, by commissioner . 240 

foreign companies . 240 

procedure by commissioner when assets of, insufficient to justify continuance 240 

may transact business as stock companies . 241 

what treated as capital in determining solvency . 241 

word “company” held to include, in chapter relative to fire contracts. 246 

certain, exempt from provisions of standard fire policy . 249 

limit of single hazard of . 355 

MUTUAL HAIL COMPANIES: 

incorporation of . 276 

agreements required of, precedent to business . 278 

liability of members of, to be stated in articles of association of. 279 

limit of single hazard of . 355 

MUTUAL INSURANCE COMPANIES: 

commissioner to examine, as to conditions precedent to commencing business 49 

when to open books, receive propositions, enter agreements. 50 

domestic, filing fee paid by, to commissioner . 64 

foreign, admittance of, to do employer’s liability insurance . 72 

mutual liability companies . 72 

admitted to take risks on retail implements, hardware. 73 

provisions concerning agents to apply to . 94 

employer’s liability, w r ho may incorporate, purposes . 290 

MUTUAL LAW: 

general, chapter concerning . 315 

MUTUAL LIABILITY: 

contingent, of employer’s liability company, how fixed . 293 

MUTUAL LIABILITY INSURANCE COMPANIES: 

foreign, admittance of, to do employer’s liability . 72 

MUTUAL WORKMEN’S COMPENSATION INSURANCE COMPANIES: 

foreign, having capital stock, tax levied against . 83 


N. 

NAME: 

corporate, contained in articles ... 47 

mutuals . 47 

how may adopt, change or take new .. 63 

of foreign company . 81 

of fraternal benefit society . 201 

fire insurance companies to conduct business under . 236 

set up in articles of general mutual companies . 316 

to contain word “mutual” and not misleading . 317 

NAMES: 

of subscribers to reciprocal insurance not required in annual report. 309 

NAMES OF ASSOCIATES: 

contained in articles . 47 

NATIONAL FRATERNAL CONGRESS TABLE: 

of mortality, fraternal mortuary obligations valued upon. 198 

foreign societies, how valued . 198 

shall be legal minimum valuation of fraternal benefit certificates . 215 

at option, company’s experience . 215 

NEGLECT OF DUTY: 

commissioner of insurance may be removed for . 1 

NET ACCRETIONS: 

of funds of fraternal benefit society, not to be used for expenses. 200 

NET ANNUAL DEPOSITS: 

construed in provisions relating to reciprocal insurance . 308 

minimum amount, when deficiency made up . 308 

NET CONTRIBUTIONS:: 

for disability benefits of fraternal benefit societies kept in separate fund. 215 

when separations not required . 215 

NET WORTH: 

reciprocal subscriber’s maximum assumption on single risk not to exceed 10 
per cent of his . 307 
































































234 


INDEX. 


NOMINATIONS, POLITICAL: Sections 

contributions to, unlawful, penalty . 123 

NON-PARTICIPATING POLICIES : 

life, not required to contain provision concerning participation . 148 

NON-RESIDENT AGENTS: 

how restricted . 88 

NOON: 

word defined in standard fire policy. 247 

NOTES: 

certain, that fraternal benefit society may invest funds in. 199 

not covered by standard fire policy . 247 

NOTICE: 

imparted by filing order of liquidation . 25 

of hearing to determine discrimination in fire rates . 42 

of meetings at which articles to be amended . 52 

mutual company . 52 

of meetings of members or stockholders . (50 

special meetings . 60 

of refusal to license agents . 95 

false, concerning capital stock, etc., penalty . Ill 

to defendant of hearing on revocation of license, etc. 117 

to commissioner, of foreign company not doing business through licensed 

agent . 121 

commissioner to examine . 122 

of disapproval of form of health and accident policy. 157 

given holder of casualty policy before cancellation for non-payment of dues, 

etc. 185 

affidavit prima facie evidence of . 185 

of meeting of casualty company about to transfer or reinsure risks. 186 

of proceedings to wind up affairs of fraternal benefit society. 218 

of revocation of license of foreign fraternal benefit society. 222 

publication of, of assessment by mutual fire insurance company. 229 

publication of, of failure of fire insurance company to meet deficiency in assets 238 

of revocation of authority of foreign mutual fire company . 240 

required, by company upon cancellation of policy, condition of standard form.. 247 

requirement of, in case of loss, under standard fire policy. 247 

given commissioner of increase of capital stock of automobile insurance com¬ 
pany . 260 

to opposite party of examination of witnesses touching adjustment, etc., of 

fire loss . 286 

of withdrawal of member of employer’s liability company . 298 

indemnification of company for existing liability . 298 

of hearings by anti-discrimination commission . 302 

NOTICE OF ASSESSMENT : 

or call, by casualty company, what to specify. 183 

NOTICE OF CLAIM: 

limitation as to time of, under standard health and accident policy . 159 

time of, provisions relative to, in standard health and accident policy. 159 

sufficiency of notice . 159 

NOTICE OF INTENTION: 

company’s, as to options, under standard fire policy . 247 

NOTICE OF LOSS: 

acknowledgment of, by insurer, not waiver of company rights . 163 

NUMBER: 

that may incorporate life and casualty companies . 131 

co-operative casualty, etc., companies. 177 

fraternal benefit societies . 201 

fire, marine, automobile and other . 226 

automobile . 259 

mutuals .’’ ’ 263 

that may incorporate farmers’ mutuals . 268 

mercantile mutuals .’ 269 

millers’ mutuals ." 270 

manufacturers’ mutuals . 271 

threshers’ mutuals .272 

retail lumber dealers’ mutuals .. ’, . 273 

shoe dealers’ mutuals . 274 

mutual hail companies . 276 

employer’s liability companies .290 

general mutual companies . 315 


OATH: 


or affirmation, false, deemed perjury . 

administering of, at examination touching adjustment, etc., of loss by mutual 

fire, etc., companies . 

OATH OF OFFICE: . 

of commissioner of insurance, when taken, where filed . 

of deputies . 

OCCUPATION: . 


change of, no reduction in indemnity, standard policy provision. 
OCEAN MARINE INSURANCE COMPANIES: 

number who may incorporate, purposes, etc. 

ODD FELLOWS: 

exempted from certain provisions of code . 

from certain provisions governing fraternal benefit societies. 


125 

289 

2 

5 

159 

226 

129 

223 
































































INDEX. 


235 


OFFICE: 

in U. S., rating bureaus to maintain . 

principal, of fraternal benefit society. 

OPMCE'EQuiPME’lfT- ar “ 0leS ° f gene, ' al mUtUal 

OFFI f C f E a ROOMS benefit S0CietieS> not tax exeill Pt . . 

assignment of, to insurance department . 

OFFICERS: 


companies 


Sections 

37 

210 

316 

224 

4 


refusal of, to be examined under oath, liquidation proceedings because of. 23 

to continue as trustees at expiration of corporate existence . 58 

under control of court and supervision of commissioner. 58 

of foreign companies, liable to penalties . 69 

and directors, joint liability of, for misrepresentation of capital stock, etc. !.!. Ill 

or agents, penalty on, for frauds, etc.•. 114 

penalty on, for rebating, etc. 115 

misrepresentation and twisting by, penalty . !!!!!.*!!!!!!!!! 116 

of life company, salary, etc., of, how authorized, etc. 142 

pensions not to be granted to..... . 142 

of life insurance company, penalty on, for discriminating between white and 

colored persons . 175 

certain casualty companies to be fully organized by election of, precedent to 

business . 179 

bonds required of officers . 179 

proof of agreements procured, assessments received. 179 

return of emergency or reserve fund to proper, upon dissolution of casualty 

company . Ig6 

balance of reserve fund of insolvent casualty company paid to proper. 188 

of fraternal benefit society not to vote by proxy . 192 

names stated in articles of fraternal benefit society. 201 

of fraternal benefit society not individually liable. 211 

agents, etc., of fraternal benefit society, commissioner may examine. 218 

foreign societies . 220 

space for signature of, in standard fire policy . 247 

signing by, of riders modifying standard fire policy. 248 

when, etc., of farmers’ mutuals have no personal liability on contracts. 268 

of companies, when to furnish certificate of number of shares held by defend¬ 
ant stockholders . 372 

OFFICERS AND DIRECTORS: 

number of, articles to contain . 47 

manner of electing, quorum, vacancies . 47 

OFFICIALS : 

railway, incorporation of companies to insure .'. 143 

capital stock required . 144 

OLD AGE: 

fraternal benefit society may provide benefit for disability as result of. 194 

period of life at which, commences. . 194 

OLD LINE LEGAL RESERVE INSURANCE COMPANIES: 

tax levied against, when and where paid .. 83 

OPTIONAL STANDARD PROVISIONS: 


health and accident policies .. 160 

not to contain contradictory provisions . 161 

of standard fire policy . 247 


ORDER: 

insurance, liquidation or dissolution of . 

refusal to observe, concerning impaired capital, liquidation because of . 

removing discrimination in fire rates . 

actions to set aside, jurisdiction . 

of commissioner for delivery of securities on deposit . 

for hearings by anti-discrimination commission . 

for removal of discrimination by anti-discrimination commission. 

from commissioner to relieve assessment to restore assets of general mutual 

company . 

ORDER OF LIQUIDATION: 

notice imparted by filing or recording of . 

what to provide for . 

ORDER OF ODD FELLOWS: 

chapter relative to co-operative casualty companies not to apply to. 

ORDER TO SHOW CAUSE: 

application for, in liquidation proceedings, where made. 

duty of court on return of order . 

ORGANIZATION: 

companies in process of, liquidation, etc., of . 

OUT BUILDINGS: 

millers’ mutuals may insure, against fire or lightning. 

OUTSTANDING CLAIMS: 

of insolvent casualty company .. 

OUTSTANDING RISKS: 

consolidation or reinsurance of . 

companies exempted . 

OVERCHARGES: 

when insurer to refund, for excessive fire rates . 

refund of, as determined by anti-discrimination commission . 

OWNERSHIP: 

conditions concerning, in standard fire policy . 


22 

23 

42 

42 

65 

302 

302 

327 

25 

25 

189 


23 

24 

22 

270 

188 

65 

66 

42 

302 

247 































































236 


INDEX. 


P. 

PAID UP PROTECTION: Sections 

when fraternal benefit society may grant, to members . 194 

limit in value . 194 

PAPERS: 

no person excused from producing, etc., in proceedings for violations. 124 

books and documents of casualty company, where kept . 181 

PARTICIPATION: 

in surplus, life policy to contain provision relative to . 148 

by corporation as member of farmers’ mutual .. 269 

PATTERNS: 

when not covered by standard fire policy . 247 

PAYMENT OF CLAIMS: 

when member may sue company for withholding. 53 

PAYMENTS : 

life policy to contain table of installment ... 148 

manner of, of life benefits must be distinctly stated. 174 

PAY ROLLS: 

5000 employes on, a prerequisite to organization of employer’s liability insur¬ 
ance company .... 290 

PENALTY: 

for failure to reply to inquiries of commissioner...'... 14 

on foreign company for not making annual statement .. 14 

for not replying to inquiries . 14 

retaliatory provisions concerning . 18 

for violating provisions relative to rating bureaus . 43 

subject to review .;. 43 

for surcharges by fire companies . 45 

foreign companies subject to same, as domestics . 69 

per diem, on foreign companies delinquent in taxes. 86 

for violating chapter provisions relative to agents and solicitors . 98 

review . 98 

for violating provisions licensing adjusters . 104 

for false statements leading to belief that one is a public adjuster. 105 

imposed by subdivision licensing auditors, abstractors, etc. 109 

under code, how recovered . 126 

for violating subdivision concerning standard provisions for health and acci¬ 
dent policies . 168 

general, clause of chapter governing fraternal benefit societies. 225 

for violation of subdivision relative to fire, marine, automobile, etc., companies 237 
PENSIONS: 


life companies not to grant, to officer, director or trustee, etc. 

PERCENTAGES OF ALLOWANCES : 

on premiums of employer's liability company, where filed. 

unfair discrimination . 

uniform deviation . 

PER DIEM COMPENSvYITON: 

,and. expenses for examining foreign companies . 

in case special examiner employed .. 

PER DIEM FEES: 

for examining companies, when fixed, how collected, etc. 

PERIODICAL CONTRIBUTIONS : 

fraternal benefit society may on application receive a part of, in cash and 

charge remainder . 

remainder limited . 

privilege granted to certain societies only ... 

PERIOD OF LIFE: 

at which payments by fraternal benefit society for old age disability commences 
PERJURY: 

false oath or affirmation deemed . 

defined and penalized in chapter governing fraternal benefit societies. 

PERMANENT DISABILITY: 

fraternal benefit society may provide benefits for, as result of disease, accident 

or old age . 

PERMANENT DISABILITY BENEFITS: 

foreign fraternals, limitation on, writing members for . 

PERPETUITY: 

corporate existence . 

PERQUISITES : 

commissioner of insurance not to retain fees as . 

PERSONAL LIABILITY: 


142 


299 

300 

301 

9 

9 

9 


194 

194 

194 


194 


125 

225 


194 

198 

56 

8 


officer, etc., of supreme body of fraternal has no, for payment of death, etc. 


benefit . 211 

PERSONAL PROPERTY: 

fire insurance contracts upon, when held made within state. 242 

by unauthorized companies, void . 243 

when mutual companv may insure, in adjoining counties . 281 

PETITION: 


for liquidation or receivership, commissioner may file in circuit court for Ing¬ 


ham county . 29 

to commissioner for consolidation or reinsurance . 65 

for amendment of state constitution, unlawful to employ person to procure... 123 

to increase, etc., capital stock by fire, marine, automobile, etc., companies.... 231 

for review of rules and regulations of employer’s liability company. 297 

PHOSPHORUS: 

conditions concerning, in standard fire policy . 247 























































INDEX. 


237 


PHYSICIAN: Sections 

PLAT^GL 4SS mSURANCE? ° n applicant for life or casualty insurance. ^G 

certificate of authority for transacting . 105 

capital required, securities deposited .!’. |!!!!!!!!!!!!!!’.! 13G 

_ T a rr.T-. a J?? u »^i^, s t at ?, ment ’ reserves, liabilities, impairment .!.... ] 137 

PLATE GLASS INSURANCE COMPANIES: 

incorporation of . 101 

PLEDGE: . 161 

nv involving, for payment of annuities, etc., deemed life insurance. 174 

POLICE rP D^P\RTME 0 NTs” ieS t0 inSure against damage done by ... 131 

_ i-d^nket policies issued to, exempted from certain health and accident provisions 1G7 

non-resident agent not to countersign . 88 

penalty for withholding, from insured before full settlement. 105 

rebate of premium on, unlawful . 115 

misrepresenting, penalty .11G 

rebate of premium on, insured not to receive, etc. .. . 118 

reduction of, in amount of unauthorized rebates .' ’ j ’ ’ ns 

new, not to be made if security deposit depreciated .! 133 

life, to contain entire contract . 140 

may include safeguard against lapse . !!!!.! 147 

provisions that must be contained in .. 148 

provisions not permitted in ..... 149 

form of, filed with commissioner . 151 

in case of disapproval, review . 151 

loan indebtedness, how ascertained . 154 

co-operative, mutual and fraternal associations, application attached on 

request . 155 

penalty for non-compliance . 156 

foreign life, form of, reciprocal provisions relative to approval of. 152 

health and accident, filed with and approved by commissioner. 157 

notice of non-approval by commissioner, review . 157 

what may be expressed or stated in, before issued or delivered. 158 

standard provisions of . 159 

issued in violation, how construed, etc. 165 

casualty, proceeds, to whom paid . 184 

not to be cancelled for non-payment of dues, without notice. 185 

affidavit prima facie evidence of. 185 

of reinsurance by fire or marine companies, signing by local agent not re¬ 
quired . 235 

corporate name to head, of fire insurance company. 236 

what not to appear on . 236 

fire insurance companies not to issue, after notice of failure to supply assets.. 238 

fire, penalty on authorized company for issuing. 244 

on agent, etc., for delivering . 245 

Michigan standard fire, form of .. 247 

cancellation of, conditions concerning, in standard fire policy. 247 

suit or action on, conditions concerning, in .. 247 

fire, what may be printed on face of. 248 

containing provisions contrary to law . 256 

penalty on company, agent, etc. 257 

when, not void . 258 

of farmers’ mutuals construed to cover teams, wagons, etc., temporarily absent 277 

in adjoining counties ..'.. 280 

contingent mutual liability of employer’s liability company fixed in. 293 

dividends on expiring, of employer’s liability companies, how fixed, etc. 295 

general mutual companies must hold license before issuing. 321 

of general mutual companies, provisions may insert, language, etc. 331 

to provide for contingent premium . 324 

approval by and filing with commissioner. 331 

how countersigned and delivered, law governing . 332 

not applicable to policies on which no commission paid local agent.... 332 

forgery of, with intent to injure or defraud . .393 

utterance of . 394 

POLICY ACCOUNT: 

certificate or, of casualty company mailed to members . 181 

POLICY HOLDERS: 

investment of funds at expiration of corporate life for security of. 58 

in foreign life and casualty companies, protected by security deposit. 71 

monthly payment premium plan . 71 

when deposit not required . 71 

rights, etc., of, how governed as to health and accident policy issued in 

violation .••. 165 

approval by, of transfer or reinsurance of risks of casualty company. 186 

transfer, etc., to be to authorized company only . 187 

POLICY PROVISION: 

prohibiting commencement of suit, not a bar .. 00 

adjudication . 

POLITICAL CONTRIBUTIONS: , 

unlawful, penalty . 

PORTABLE ENGINES: 

threshers’ mutuals may insure . 

POWER OF ATTORNEY: , ^ . .. ono 

conferred on commissioner by fraternal benefit societies. -69 







































































238 


INDEX. 


PRELIMINARY CERTIFICATE: 

when commissioner to furnish fraternal benefit society with, tenure of. 

extended term . 

PRELIMINARY REQUIREMENTS: (See Application.) 

upon organization of fraternal benefit society . 

PRELIMINARY TERM INSURANCE: 

life policy may provide for, by inserting clause. 

reserve required . 

PREMIUMS: (See Assessments: Contributions.) 

or rate of, not to include surcharge . 

tax on, of fire, marine and automobile companies . 

of foreign mutual workmen’s compensation companies. 

of foreign companies, how computed . 

where insurance secured through unauthorized company. 

of general mutual companies . 

non-resident agent not to receive commission based upon, received. 

rebate of, unlawful . 

insured not to receive, etc., rebate of, penalty . 

embezzlement by agents, penalty . 

optional standard provision providing for deduction of, from settlement _ 

amount of, for life benefit must be distinctly stated . 

unearned, reservation of, from dividends of fire insurance companies . 

penalty for collecting, etc., on fire policies of unauthorized companies. 

of employer's liability company, how determined, paid, etc. 

contingent mutual liability of members . 

of employer’s liability company, how fixed and determined . 

not effective until filed and approved by commissioner . 

classification of normal, of employer’s liability company, filed with commis¬ 
sioner . 

unfair discrimination . 

uniform deviation . 

held by general mutual company, a condition to commencing business. 

taxable, of general mutual companies, what shall be . 

on existing bonds, surety company to make statement to commissioner concern¬ 
ing . 

liability for unearned portion of . 

PREMIUM MONEYS: 

paid for unauthorized life or casualty insurance, recovery of. 

PREMIUM NOTES: 

acceptance of, by mutual fire, marine, automobile, etc., companies . 

when accepted as capital stock, certificate required . 

of mutual fire companies, provisions concerning. [[[[ 

amount required of manufacturers’ mutuals precedent to business 
articles and by-laws of mutual fire, etc., companies may or may not provide for 
PREMIUM PAYMENTS: 

default in, life policy to contain provision for surrender value . 

computation of value .. 

purchase or reinstatement . 

PRESIDENT: 

and secretary to make triplicate copies of resolution continuing corporate life 

of casualty company, to hold bonds of secretary and treasurer. 

or other executive officer of mutual fire, etc., company to levy assessments 

excessive loss . 

penalty on officer for not making . 

PRINCIPAL OFFICE: . 

of casualty company, books, papers and documents kept at. 

location of, of fraternal benefit society . 

PRINTING: . 

of health and accident policy, size of type . 

that may appear on face of fire policy . 

PRINTING OR WRITING: . 

blanks in standard fire policy may be filled in by. 

PROCESS : ' ' ‘ .. 

benefits, etc., of fraternal benefit society not liable to. 

PROFITS: . 

insurance on, inland or ocean marine . 

notes to remain as security until accumulated, of mutual fire company reach 

certain amount . 

PROMISSORY NOTES: . 

of minors given in payment for premiums. 

PROOF OF AGREEMENTS : . 

under oath, furnished to commissioner by casualty company. 

PROOF OF DEATH: . 

life companies to finally pass on claim within six months after final... 

life policy must contain provision that settlement be made after. 

PROOF OF LOSS: . 

casualty companies to finally pass on claim within six months after final. 

limitation as to time of, under standard health and accident policy.. 

forms for submitting, under standard health and accident policy . ..'I 

furnishing of forms for, by insurer, not waiver of company rights... 

provided for in standard fire policy . 

when loss payable after, under standard fire policy. 

PROPERTY: . 

abandonment of, to company, provision against, in standard fire policy. 

unmsurable and excepted, provisions concerning, in standard fire policy. 

space for description of, in standard fire policy.’ ’ ‘ ’ 


Sections 

201 

201 

201 


150 

150 


45 

83 

83 

87 
128 
329 

88 
115 
118 
119 
100 
174 
228 
245 

292 

293 
295 
295 


299 

300 

301 
321 
329 

341 

341 

130 

227 

227 

229 

278 

280 


148 

148 

14S 


57 

179 

282 

282 

283 

181 

210 

158 
248 

248 

213 

226 

229 

172 

179 

53 

148 

53 

159 
159 
103 
247 
247 

247 

247 

247 

































































INDEX. 


239 


PROPERTY .—Con. Sections 

description of, forms of, may be printed on fire policy . 248 

amount and location of, to be covered by mutual hail companies precedent to 

business . 278 

limitation as to, that may be insured by mutual fire, cyclone and hail com¬ 
panies . 281 

corporate, taxation of . 419 

PROPERTY DAMAGE: 

automobile insurance against . 259 

mutual companies . 263 

PROPOSITIONS AND AGREEMENTS: 

when mutuals to open books for . 50 

PRO RATA CLAUSE: 

average or, when may be issued and attached . 252 

form of application for. 253 

form of clause . 254 

PRO RATA LIABILITY: 

conditions concerning, in standard fire policy .. 247 

PROSECUTING ATTORNEYS: 

duty as to recovery of penalties provided by code... 126 

duty of, to recover penalty for unauthorized life insurance business . 174 

PROXY: 


members, officers, representatives or delegates of fraternal benefit society not 

to vote by . 

PUBLICATION: 

of report of examination of company . 

of investigations of companies by commissioner . 

of companies liquidated or resuming business . 

of notice of meeting at which articles to be amended . 

adverse, by commissioner concerning fraternal benefit societies. 

of assessment notice by mutual fire insurance companies . 

of notice of failure of fire insurance company to meet deficiency in assets. 

of notice of revocation of authority of foreign mutual fire companies. 

PURCHASE OR REINSTATEMENT: 

life policy to contain provision for, in event of default in premiums. 

PURPOSES OF INCORPORATION: 

contained in articles . 

reference to part and chapter of act . 

in articles of fraternal benefit society. 


192 


12 

18 

27 

52 

221 

229 

238 

240 

148 

47 

47 

201 


Q. 

QUALIFICATIONS: 

required of commissioner of insurance . 

required of trustees or directors .. 

of members of fraternal benefit society . 

required of foreign fraternal societies . 

QUORUM: 

of directors, articles to state what constitutes 
QUO WARRANTO: 

by state, to question corporate right . 


1 

59 

196 

208 

47 

54 


R. 

RAILROAD BONDS: 

investment of capital and funds in . 

RAILROAD TICKET POLICIES: , . , „ 

certain health and accident provisions may be omitted from. 

RAILWAY CONDUCTORS: . „ , - . 

casualty companies may provide indemnity for loss of position by . 

conditions precedent to commencing business, proof required. 

RAILWAY EMPLOYES: . . 4 . . ... . 

incorporation of companies to insure, against loss of position, etc. 

capital stock required . 

RAILWAY ENGINEERS: , ... . 

casualty companies may provide indemnity for loss of position by. 

conditions precedent to commencing business, proof required . 

RATE OF MORTALITY : 

American experience life table, annual official valuation . 

RATER: 

fire insurance, licensing of . 

R, 4TES * 

commissioner may require filing of, by rating bureaus . 

excessive or discriminatory fire, prohibited . 

members of commission to determine . 

how may not be removed . 

RA Tnc?eas^d C m- N exfraT >X to ^S?eet deficiency in funds of fraternal benefit society. 

commercial, of subscriber to reciprocal insurance, examination of. 

RATING BUREAU: , x . 

fire insurance, companies may maintain own . .. 

may write insurance independent of, deviation. 

membership in . 

defined, how governed, etc.• • .. 

to secure license from insurance commissioner . 

to maintain office in state . 

to maintain office within U. .. 


58 

167 

178 

179 

143 

144 

178 

179 

139 

34 

39 

40 
42 
42 


215 


307 


33 
33, 41 
33 

33 

34 
37 
37 


























































240 


INDEX. 


RATING BUREAU.—Con. 

Are companies in application for license to state membership in 

to inspect risks and make survey . 

copy of surveys furnished owner and commissioner. 

commissioner may make inquiries concerning . 

examination of, by commissioner . 

penalty for violations by . 

certain fire companies exempt from chapter relative to.... 

for fire insurance, commissioner to establish . 

investigation rates through division .. 

RATING COMMISSION: (See insurance rating commission.) 
RATIO OF LOSS: 


Sections 

37 

3S 

3S 

39 

39 

43 

44 

30 

31 


under reciprocal insurance not required in annual financial statement. 

RAW MATERIALS: 

manufacturers’ mutuals may insure, against fire or lightning. 

READMISSION: . 

of foreign company revoked for not transacting business through licensed agent 

examination of companies . 

REAL ESTATE: . 


securities, fraternal benefit society may invest funds in. 

of fraternal benefit society, not tax exempt. 

REAL PROPERTY: . 

fire insurance contracts upon, when held made within state. 

by unauthorized companies, void .! 

_ Persona 1 , when mutual company may insure, in adjoining counties 
REBATES: 


insured not to receive, penalty 
REBATING: 


r. 


and other acts prohibited . 

hearing on revocation, notice, review 
REBUILD: 


309 

271 

121 

122 

199 

224 


242 

243 
281 

118 

115 

117 


„ company’s option to, property damaged, etc., under standard fire policy 
RECEIVER: 


when reserve fund of casualty company paid over to 

application of fund, disposition of balance . 

when, may be appointed for fraternal benefit society 
RECIPROCAL EXCHANGES: 


prohibiting false statement in regard to 
RECIPROCAL INSURANCE: 

chapter relative to . 

RECIPROCAL INSURANCE CONTRACTS: 

chapter relative to . 

RECIPROCAL PROVISION: 


relative to admittance of foreign life and casualty companies 

concerning approval of form of foreign life policies. 

what foreign health and accident policy may contain. 

concerning specific tax on surety companies . 

RECORD: 


certified copies of, fee allowed commissioner of insurance for .. 

penalty on foreign company for refusal to exhibit . !!!.!!!!!!!!!!! 

of certificates of authority of fraternal benefit societies kept by commissioner 

effect of certified copies of . 

RECOVERY: . 


of penalties imposed by code . 

of premium moneys paid for unauthorized life or casualty insurance. 

of money paid to unauthorized life insurance company . 

limitation of action . ‘ 

of_ amount of assessment from member of mutual fire insurance company. 
REFUND i 

of excessive or discriminatory fire rates . 

of overcharge as determined by anti-discrimination commission!! 

REINCORPORATION: . 

not required of fraternal benefit societies already organized . . 

how may amend articles, how and when filed, when operative ! .! !! ! ! ’!* " 

under code of companies previously organized . 

REINSTATEMENT: . 

REINSTATEMENT OF^LICY pr ° vision for ’ in event of default ^ premiums 

a £ter lapse^ provisions relative to, in standard health and accident policy. 

REINSURANCE: ^ 


certain, without approval, liquidation proceedings because of. 

consolidation or, of outstanding risks . 

petition to commissioner, what to set forth. !..!!!!!!!!!!!!!!!!!!!!!!! 

approval by stockholders or members . !!!!!!!!!.!!!." 

final approval of contract by commissioner... 

delivery of securities on deposit . !!!! . 

companies exempted . !!!!!!!!!!!!!!! . 

of policies of foreign companies issued through resident agent!!!!!!!!!! 

authority of life and casualty companies to do . 

of risks, casualty company, how approved, effect of. !!!!!!!!!!!!!! 

by authorized company only. .... 

not included in determining maximum single risk of fire.’ marine* etc ’ 
companies . ’ ’ 

of risks by fire, marine, automobile, etc., companies !!!!!!!!.!!!!!!!!!!!! . 

unauthorized, prohibited by fire or marine companies .....!."! . 

by general mutual companies . 

by mutual fire, etc., companies . !!!!!! 


246 

188 

188 

218-19 

390 

303 

303 

82 

152 

166 

348 

19 

122 

201 

201 

126 

130 
174 
174 
229 

42 

302 

202 

202 

338 

148 

159 

23 

65 

65 

65 

65 

65 

66 
120 

131 
186 
187 


~~ i 

232 

235 

335 

356 
































































INDEX. 


241 


REINSURANCE CONTRACTS: 

SowSr n of e Jpnl^ e i d ,J,^ m i Pr0visior ^ s governing fraternal benefit societies. 

REINSURANcTRESERVE- 0mPan l ° “ ake ° r aCCept . 

REifACTIVE ^ nd ^ ie maiane com Panies, calculation by commissioner. 

RELATIVE^QF FOURTH^^^CR!]!^' 11 ^ heneflt member haV ‘ nS n °. 

RELIGI0US a S0CIETi e Esf ry ° £ traternal beneflt societ y . 

certain, granted certain exemption under code . 

ma> provide sick, death or funeral benefits, how limited, etc. 

1 1Cns precedent to commencing business, proof required. 

REMOVAL . exempted £rom Provisions governing fraternal benefit societies. 

REMOvlL f FROM C OFFICE: ° f commissioner of insurance occasioned by.. 

RENEWAL- iSSi ° ner ° f insurance for neglect of duty, etc. 

of certificate of authority of foreign company . 

solvency a condition . 

annual, of agent’s or solicitor’s license .!!! !. 

of adjuster’s license ..] 

of license of fraternal benefit society, fee, etc. 

foreign societies . 

RENEWAL COMMISSIONS: . 

RENEWAL*TERM^ ° n ^ us ^ ness Produced, life companies may contract..., 

of corporation, when to begin . 

< r 1 if- rter expires, consent required . 

REORGANIZATION: 

of life and casualty companies . 

^ * change of business, increase of capital, etc.!!!.'! 

RLJrAIR: 


Sections 

223 

320 

234 

195 

195 

129 

ITS 

179 

223 


1 

07 

81 

99 

103 

207 

208 

142 


57 

57 

134 

134 


company’s option to 
REPLACE: 


, property damaged, etc., under standard fire policy 


option to, property lost, etc., under standard fire policy. 


REPORT: 


of examination of insurance company, what to comprise. 

hearing granted before filing .[.' 

may be published ." ' ’ ‘ ' 

of financial condition by foreign fire or Are and marine companies. 

in estimate, what considered cash capital . 

of financial standing of foreign Lloyds seeking admission. 

how attested . 

of business done for unauthorized companies, where filed .. 

statement of gross premiums charged and returned. 

annual financial, attorney for reciprocal to file . 

license fee to accompany . 

REPORT OF VALUATION: . 

of certificates by fraternal benefit society, when made, what to show, etc 
REPRESENTATIONS: 

by applicant, attached to certain policies on request. 

license subject to revocation for non-compliance . 

REPRESENTATIVE FORM OF GOVERNMENT: 

defined in chapter relative to fraternal benefit societies.. 

REPRESENTATIVES: 


on supreme governing body of fraternal benefit 
to constitute majority, not to vote by proxy 
REQUISITIONS: 


society, how and when elected 


for certain information may be included in annual statement 
for agent’s license .•. 


RESERVATIONS: 


from dividends of fire insurance companies 
RESERVE: 


impaired, of mutual companies, liquidation proceedings because of. 

valuation and, required of foreign co-operative life companies. 

required on preliminary term insurance . 

fraternal benefit society maintaining certain, may grant paid up protection.... 

limit in value .... 

general mutual companies to maintain unearned premium, and other, 

separately . 

same basis as required of domestic stock companies. 

reserve for losses based on premium income, how computed. 

required of fraternal benefits doing whole family protection. 

RESERVE FUNDS: 

use of, other than as prescribed in articles, etc., unlawful . 

casualty company, computation of, to be held by. 

may provide in policy for . 

surplus moneys . 

where deposited, etc. 

return of, by state treasurer upon dissolution of . 

transfer, etc., of assets, etc., to authorized companies only . 

disposition of, upon insolvency . 

required of automobile insurance company, when increased, etc. 

when capital impaired, duty of commissioner . 


247 


247 


12 

12 

12 

74 

74 

75 
75 

100 

101 

309 

313 


215 


155 

156 

192 

192 

392 

13 

90 


228 

23 

82 

150 

194 

194 


326 

326 

326 

351 

113 

137 

181 

181 

181 

186 

187 

188 
261 
261 
































































242 


INDEX. 


RESERVE FUNDS.—Con. Sections 

required under provisions relating to reciprocal insurance . 308 

net annual deposits construed .. 308 

RESIDENCE: 

corporate, what deemed for taxation purposes . 419 

RESIDENT: 

agent’s license issued only to . 90 

solicitor’s license limited to, fee, etc. 91 

RESIDENT AGENT: 

reinsurance of risks of fire or marine companies through.. 235 

general mutual companies to comply with law requiring delivery of policies 

through . 332 

when requirement not applicable . 332 

RESIDENT AGENT OR ATTORNEY: 

for service of process on foreign company. TO 

stipulation, service on commissioner or deputy. TO 

copy of appointment, where filed . TO 

RESIDENT DIRECTORS: 

of foreign fire, etc., companies, deemed legal and proper officers. T4 

filing of consent . T4 

RESIDENT SECRETARY: 

of foreign fire, etc., company, deemed legal and proper officer. T4 

RESOLUTION: 

prohibiting commencement of suit, not a bar. 53 

adjudication . 53 

electing to adopt provisions of general mutual law, filing and approval of. 330 

RESPONDENTIA INTERESTS: 

insurance upon, inland or ocean marine . 22G 

RETAIL LUMBER DEALERS’ MUTUALS: 

incorporation of . 2T3 

liability of members of, to be stated in articles of association of . 2T9 

RETALIATORY PROVISIONS: (See Foreign Insurance Companies.) 

concerning deposit of securities, taxes, fines, penalties, etc. 18 

taxation of foreign companies subject to . 83 

RETURN PREMIUM: 

embezzlement by agents, etc., penalty .. 119 

REVIEW: 


of actions enforcing penalty, concerning excessive fire rates . 43 

by court, of revocation of license of auditor, abstractor, etc. 108 

of order revoking license, etc., for twisting, etc. 11T 

of commissioner’s action in disapproving form of life policy . 151 

in disapproving form of health and accident policy. 15T 

upon refusal to license or revocation of authority of foreign fraternal. 208 

revoking license of foreign fraternal benefit society . 222 

by industrial accident board, of rules, etc., of employer’s liability company.... 296 

REVOCATION: 


of office appointments by commissioner of insurance . 5 

of authority of foreign company for not making annual statement, etc. 14 

for non-payment of fees or taxes . 18 

for making fraudulent reports, etc., hearing . 112 

for not doing business through licensed agent . 121 

conditions of readmittance, examination . 121-2 

of authority of foreign fraternal benefit society for refusing examination. 220 

for exceeding powers or non-compliance, fraud, etc.•. 222 

of authority of foreign mutual fire companies for unsound condition. 240 

notice given . 240 

of agent’s license, notice, hearing .... 95 

of authority, penalty on company for violating certain provisions relative to 

agents, etc. 98 

review . 98 

of license of adjuster, abstractor, counselor or analyst by commissioner.103, 108 

hearing and review . 108 

of license for misrepresentation and twisting . 116 

hearing, notice, review . 117 

of license for violating standard provisions for health and accident policies.... 168 

of authority of co-operative, etc., companies for not attaching application. 156 

penalty for violating chapter provisions relative to fire contracts. 25T 

of automobile insurance company for impairment of capital. 261 

of attorney for reciprocals .:. 312 

RIDER CLAUSES: 

co-insurance, signing of, by company or agent . 250-1 

RIDERS: 

modification of standard fire policy by . 248 

RIGHT OF RECOVERY: 

assignment of, condition concerning, in standard fire policy. 247 

RIGHTS OF BENEFICIARY: 


under standard health and accident policy . 

RIGHTS OF INSURER: 

what not to operate as waiver of, in defense of claim under health and accident 

policy . 

RIOT: 

hazard not covered by standard fire policy. 

RISKS: 


159 

163 

247 


permission for withdrawal of surplus securities on deposit over and above.... 17 

rating bureaus to inspect, and make surveys. 38 

copies furnished owner and commissioner . 38 

commission to determine descrimination in rates between fire. 42 































































INDEX. 


243 


RISKS.—Con. Sections 

outstanding, consolidation or reinsurance of . 65 

companies exempted . 66 

foreign Lloyds, maximum single . 75 

right of agents to procure insurance on, previously refused. 93 

reinsurance by life and casualty companies . 131 

inland and ocean marine, insurance upon. 226 

maximum single, allowed fire, marine, automobile, etc., companies . 227 

reinsurance of, by fire, marine, automobile, etc., companies . 232 

unexpired time, calculation of reinsurance reserve of. 234 

of fire company, liability of directors for additional losses upon new, during 

deficiency in assets . 240 

that farmers’ mutuals may insure against . 268 

limit of, on property other than farm property. 268 

probable, of employer’s liability company, how determined . 292 

classification of, of employer’s liability company, filed with commissioner. 299 

unfair discrimination . 300 

uniform deviation . 301 

of inland transportation, etc., insurance by general mutual company. 320 

RITUAL: 

lodge system with, fraternal benefit society defined as association with, etc.... 190 

ROOFS: 

insurance by mutual company against leakage of . 320 

RULES: 

commissioner may require filing of, by rating bureaus. 39 

RULES AND REGULATIONS: 

certified copies of, of fraternal benefit society filed with commissioner. 201 

of employer’s liability company for prevention of injuries. 297 

review of grievances by industrial accident board . 297 


S. 

SAFEGUARD AGAINST LAPSE: 

life policy may contain . 

SAFETY APPLIANCES: 

expulsion of member of employer’s liability company for neglect to supply. 

review of grievances by industrial accident board . 

SAILORS: 

issue to, without fee of transcripts under seal, of insurance payments, etc. 

SALARY: 

of officers, trustees and directors of life companies . 

of commissioner of insurance . 

of deputy commissioners of insurance . 

of chief examiner . 

of chief clerk . 

of assistant actuaries . 

of assistant examiners . 

SALE: 

of securities on deposit, to satisfy judgment . 

of fraudulent stock .!... 

SALE OF SECURITIES: 

on deposit, to satisfy judgment . 

of mortgage securities. 

SALES UPON JUDGMENTS: 

real estate purchased at, period company may hold . 

SALVAGE BUREAUS: 

blanket policies issued to, exempted from certain health and accident provisions 
SAW MILLS: 

portable, threshers’ mutuals may insure . 

SCHEDULES: 

of rating bureaus filed with insurance commissioner. 

what to show, etc. 

commissioner may require filing of, of rating bureaus. 

of rates, fire companies to file deviation from . 

table of mortality based on American experience . 

repealing specific acts ... 

inconsistent acts, and act 277 of 1905 on and after Jan. 1, 1918. 

SCHOOL DISTRICT BONDS: 

fraternal benefit society may invest funds in. 

SCHOOL TAX: 

extent of exemption of fraternal benefit society from. 

SEAL OF OFFICE : 

of commissioner of insurance, how devised, approved and filed. 

may be renewed when necessary ,. 

SECOND DEPUTY: 

commissioner of insurance, appointment, etc. 

SECRETARY: . , . , 

president and, to make triplicate copies of resolution continuing corporate life 

of casualty company, bonds required of . 

or other executive officer of mutual fire, etc., company to levy assessments- 

excessive loss . 

penalty on officer for not making . # ... 

of mutual fire, etc., company to deliver annual itemized report to members.... 

penalty for not delivering .. 

SECRETARY OF STATE: ^ 

reasons for removal of commissioner of insurance filed with. 

oath of office of commissioner of insurance filed with . 


147 

297 

297 

420 

141 

2 

5 

5 

5 


133 

383 


133 

133 


55 

167 

272 

38 

38 

39 
41 

139 

336 

337 

199 

224 

3 

3 


5 

57 

179 

282 

282 

283 

284 

285 

1 




























































244 


INDEX. 


SECRETARY OF STATE .—Con. Sections 

record concerning seal of office of commissioner of insurance filed with. 3 

service of process upon, as attorney for insurance companies . 369 

service in duplicate . 370 

certain insurance companies to file list of shares issued, etc., with. 385 

SECRET SOCIETIES: 

certain, chapter relative to co-operative casualty companies not to apply to.... 189 

SECURITIES: 

when commissioner may examine, etc., of companies . 17 

deposited, of companies under investigation or prohibition. 17 

permission to withdraw surplus . 17 

on deposit, delivery of, upon consolidation or reinsurance . 65 

deposited by foreign life and casualty companies . 71 

when deposit not required . 71 

of foreign companies, sale of, for delinquent tax . 85 

per diem penalty . 86 

deposit of, of domestic fire or life companies doing foreign business . 127 

provisions governing . 127 

sale of, on deposit, to satisfy judgment . 133 

deposit of, by life companies a condition precedent . 174 

reserve or emergency fund of casualty company shall be in cash or. 181 

in which funds of fraternal benefit society may be invested. 199 

deposit notes, when to remain as, for losses of mutual fire companies. 229 

not covered by standard fire policy. 247 

deposit of, by automobile insurance companies . 262 

deposit of, required of surety cpmpanies ... 341 

deposited, surety company to file statement with commissioner describing. 343 

SECURITIES COMMISSION: 

to approve steamship bonds prior to investment of capital and funds in. 61 

government securities . 61 

SECURITY: 

for debts, companies may hold real estate conveyed or mortgaged as. 55 

SERVICE: 


of subpoena compelling attendance touching adjustment, etc., of loss by mutual 

fire, etc., company . 287 

SERVICE OF PROCESS: 


on commissioner as attorney for fraternal benefit societies, how made_ 

when service not valid . 

how had upon subscribers to reciprocal or inter-insurance contracts. 

number of copies served, how disposed of . 

on commissioner as attorney for, foreign general mutual companies. 

on commissioner as attorney under act authorizing surety company bonds 

foreign companies . 

on foreign and domestic insurance companies . 

fraternal, co-operative and mutual beneficiary societies, etc. 

fire and marine insurance companies . 

on secretary of state or other officer, as agent or attorney. 

SERVICE OF SUMMONS: 


209 
209 
306 
306 
333 
339 
341 
70, 368-9 
369 
369 
369 


in garnishment cases against corporations, where may be made 

duty of officer served to appear . 

SETTLEMENT : 


37S 

379 


on life policy, provision must be contained in, as to time of. 148 

at maturity, life policy not to contain provision for less value. 149 

of loss under unauthorized fire policy, penalty for taking part.. 245 

SHARES: 


corporate, may be attached or taken in execution . 

rights of purchaser . ..... 

dividends accrued . !!!!!!!!!!!!!! 

when company officer to furnish certificate of number of, held by defendant!!! 
SHERIFF: 

service of subpoena by, compelling attendance of witnesses . 

SHOE DEALERS’ MUTUALS: 

incorporation of . 

liability of members of, to be stated in articles of association of.!!.!!!!!!.!'! 
SICK BENEFITS: 

casualty companies may provide for . 

by particular religious denominations . ..!!!!!!!!!!!!!! 

conditions precedent to commencing business, proof required. 

licensing of fraternal benefit societies not paying death or . 

SICKNESS: . 

SIGNS^-bilUy by, insurance against, by general mutual company. 


371 

373 

374 

372 

287 

274 

279 

178 

178 

179 
223 

320 


fire insurance companies not to issue false representations by, etc. 

SIMILARITY: 

of corporate names . 

foreign companies . !..!.!!!!!!!!!!.!!!! 

of names of general mutual companies... 

SINGLE PREMIUM POLICIES: . 

provisions not applicable to, not required to be incorporated in. 

SINGLE RISK: . 

statement of maximum indemnity on, of reciprocals filed with commissioner. 

limit of, of mutual fire, etc., companies. 

defined . 

SISTER: . 

minor may insure for benefit of, etc. 

SOCIAL MEMBERS: . 

fraternal benefit society may accept general or . 


236 

63 

81 

316 

148 

307 

355 

357 

172 

196 


































































INDEX. 


245 


SOCIETIES: . Sections 

domestic, liquidation or dissolution of . 22 

what, deemed operating on lodge system . 191 

labor or religious, exempted from certain provisions governing fraternal benefit 

societies . 223 

word, substituted for “insurer” in standard health and accident policy. 159 

SOLDIERS: 

issue to, without fee of transcripts under seal, of insurance payments, etc. 420 

SOLICITATION: 

certificate authorizing, of members by fraternal benefit society organizing. 201 

penalty for unauthorized, of membership in fraternal benefit society. 225 

certain, by attorney for reciprocal insurance, unlawful . 311 

SOLICITORS: 

of foreign fire, or fire and marine companies, not to solicit business under com¬ 
pact . 80 

defined . 88 

may represent themselves as solicitors only . 91 

clerical help not to act as . 90 

penalty on, for violating chapter relative to . 98 

for rebating, etc. 115 

for misrepresentation and twisting . 110 

for accepting unauthorized commission . 118 

for embezzlement by . 119 

for receiving application for unauthorized fire company . 245 

SOLICITOR’S LICENSE: 

fee, required, limited to residents . 91 

term of, renewal . 99 

SOLVENCY: 

a condition to admittance of foreign company. 81 

to renewal of certificate of. 81 

test of, of fraternal benefit society . ; . 215 

of fire, marine, automobile, etc., companies, premium notes, how considered in 

determining .. 231 

what treated as capital in determining, of mutual fire company on stock plan.. 241 

a condition to admittance of foreign general mutual company... 333 

certificate of authority proof of, of surety company. 342 

SON-IN-LAW: 

may be beneficiary of fraternal benefit member. 195 

SOUND VALUE: 

and loss or damage, how determined under standard fire policy. 247 

SPECIAL AGENT: 

defined . 88 

non-resident, restricted . 88 

license required, unlawful to act without . 89, 92 

term of, renewal . 99 


SPECIAL EXAMINER: 

per diem and expenses of, while examining foreign company 

how paid . 

SPECIAL MEETINGS: 

amendment of articles at, notice given . 

mutual company . 

renewal of corporate existence by vote at . 

who may call, and when . 

notice, how given, what to contain . 


8 

8 

52 

52 

57 

60 

60 


SPECIE: 

insurance on, inland or ocean marine . 

SPECIFIC TAX: 

levied against foreign companies .*. 

in lieu of other taxation .. 

certain failures not to relieve company . 

if delinquent, how collected. 

per diem penalty . 

of 2 per cent paid by surety companies . 

cancellation or return premiums . 

corporations paying, exempt as to property covered by . 

SPRINKLER HEADS: 

etc., approval of . 

SPRINKLER INSURANCE COMPANIES: 

incorporation of . 

STANDARD FIRE POLICY: 

Michigan, form . 

modification of, by riders and endorsements . 

permissible exceptions to .;. 

not applicable to certain mutual fire companies . 

STANDARD INDUSTRIAL MORTALITY TABLE: 

death benefit contributions for whole family protection based on 


226 


83 

83 

84 

85 

86 
348 
348 
419 


362-6 


131 

247 

248 

248 

249 

350 


STANDARD PROVISIONS: 

of health and accident policies . 

optional ..... 

policy not to contain provisions contradictory to. 

STATE ADMINISTRATIVE BOARD: . 

to fix number, etc., of experts, etc., in rating division.. .. 

to determine assessments against departments, etc., for insurance 


159 

160 
161 

30 

406 






























































246 


INDEX. 


STATE AGENT: Sections 

defined . 88 

non-resident, restricted . 88 

license required, unlawful to act without . 90, 92 

term of, renewal . 99 

STATE BANKING COMMISSIONER: 

member of commission to determine discrimination in fire rates. 42 

of securities commission to approve of certain bonds for investment. 61 

of anti-discrimination commission under employer’s liability provisions.... 302 

STATE INSURANCE FUND: 

how created, etc. 398 

limit of . 406 

STATEMENT: (See Annual Statements.) 

false, concerning capital stock, etc., penalty . Ill 

of credit of member of fraternal benefit society, when and where filed, etc. 217 

of maximum indemnity on single risk of reciprocals filed with commissioner. . 307 

of examination of commercial rating of subscribers . 307 

by surety company concerning capital, investments, premiums on existing 

bonds, etc. 341 

similar annual, describing securities deposited, etc. 343 

STATEMENT OF RATES: 

when prohibited contradictory provisions of health and accident policy not to 

apply to . 161 

STATEMENTS DEEMED REPRESENTATIONS: 

and not warranties, life policy to contain provision ... . 148 

when not to avoid policy . 148 

STATE PROPERTY: 

insurance of . 397-406 


STATE TAX: 

extent of exemption of fraternal benefit societies from. 

STATE TREASURER: 

official fees and charges, payment of, to . 

of penalties collected . 

securities deposited with, of companies under investigation, etc. 

permission to withdraw surplus . 

certificate of, of securities deposited, as evidence of corporate existence. 

foreign companies to pay tax to, when, rates, etc... 

in lieu of other taxation .. 

delivery of tax statement of foreign company to . 

to issue tax receipts to foreign companies .. 

security deposit of life and casualty companies, amount, etc. 

collection of dividends on, during solvency . 

additional, for general indemnity and surety bonding business . 

sale to satisfy judgments . 

securities on deposit with, sale to satisfy judgment. 

sale of mortgage securities ... 

mortgage securities deposited with, deemed custody of state. 

violation of custody, embezzlement, penalty . 

reserve or emergency fund of casualty company deposited with. 

in cash or securities . 

vipon dissolution of casualty company, on order, to pay over reserve or 

emergency fund . 

transfer, etc., of assets, etc., to authorized company only. 

to pay over reserve fund of casualty company upon insolvency, to receiver. . . . 

surety companies to deposit securities with . 

annual statement filed with, by surety companies, what to contain..... 

a condition precedent to renewal of certificate by commissioner. 

specific tax paid to, by surety companies. 

STATE TREASURY: 

payment of penalties collected, into .. 

deposit of securities of domestic fire and life companies doing foreign business, 

in . 

provisions governing . 

STATIONERY : 

fire companies not to issue false representations by . 

STEAM BOILER INSURANCE: 

incorporation of companies for, against loss, etc., by explosion. 

certificate of authority to transact ... 

paid-up capital required, securities deposited . 

annual statement, reserves, liabilities, impairment .... ’ 

general mutual companies may do, hazards covered . 

STEAMSHIP BONDS: 

investment of capital and funds in . 

approval by securities commission . 

STEP-CHILDREN: . 

may be beneficiaries of fraternal benefit members. 

STEP-FATHER: . 

may be beneficiary of fraternal benefit member. 

STEP-MOTHER: . 

may be beneficiary of fraternal benefit member. 

STOCK: . 

sums due on, reserved from dividends of fire insurance companies. 

certificates of, par value of, upon increase, etc., of capital of fire, marine! etc. 

companies . ..... 

calling in old, and issuing new .:. 


224 

7, 20 
126 
17 
17 
’ 54 
83 

83 

84 
87 

131 

133 

131 

133 

133 

133 

140 

140 

181 

181 


186 

187 

188 
341 
348 
348 
348 


126 

127 

127 

236 


131 

135 

136 

137 
320 


61 

61 

195 

195 


195 , 
228 


231 

231 































































INDEX. 


247 


STOCK.—Con. Sections 

return of original, of fire company by stockholder refusing, etc., to pay assess¬ 
ment . 239 

issue of new certificates ................... ’'' ’ ’ *>39 

provision concerning transfer of, of fire company during deficiency in assets, 

etc... ° ...’ 240 

connected with manufacture of flour, etc., millers’ mutuals may insure. 270 

belonging to business, manufacturers’ mutuals may insure. 271 

of boots and shoes, shoe dealers’ mutuals may insure . 274 

when court may restrain transfer of . 374 

knowingly issuing fraudulent insurance, made felony . 383 

knowingly selling, penalty . 384 

STOCK COMPANIES: (See Stock Insurance Companies.) 

capital stock required of, fire, marine, automobile insurance. 227 

mutual requirements . 227 

when mutual fire companies may transact business as . 241 

provisions of law applicable to . 241 

STOCK FIRE INSURANCE COMPANIES: 

word “company” held to include, in chapter relative to fire contracts . 240 

STOCKHOLDERS : 


or director of insurance company, commissioner not to be . 

notice given, of meeting at which articles to be amended . 

renewal of corporate existence by vote of . 

notice given, of meetings ... 

or members, approval of contract of consolidation or reinsurance by. 

final approval by commissioner . 

liability of, of fire insurance company to creditors for unlawful dividends. 

order directing, of fire insurance company to pay deficiency in assets. 

when call made, amount, etc. 

surrender of stock upon refusal . 

directors liable for additional losses on new risks . 

vote of, required to increase capital stock of automobile insurance company... 

when, etc., of farmers’ mutuals have no personal liability on contracts. 

STOCKHOLDERS’ MEETING: 


1 

52 

57 

00 

05 

05 

228 

238 

239 

239 

240 
200 
268 


to approve increase, etc., of capital of fire, marine, automobile, etc., companies 231 

notice given . 231 

STOCK INSURANCE COMPANIES: 

qualifications required of director of . 59 

general mutual companies granted authority to extent of . 320 

when general mutual companies to meet capital stock requirements of domestic 324 
investment of assets of general mutual companies governed by laws relating to 325 

separate maintenance of reserves . 320 

requirements of, applicable to delivery, etc., of policies of general mutual 

companies . 332 

not applicable to policies on which no commission paid local agent. 332 

general application of requirements . 333 

STOCK LIFE INSURANCE COMPANIES: 

deposit of securities required of, to govern automobile insurance companies.... 259 
STOCK PLAN: 

provisions concerning agents, to apply only to companies on. 94 

increase of capital of life and casualty companies on ... 131 

STORE AND OFFICE FIXTURES: 

mercantile mutuals may insure, against fire or lightning. 20*9 

STORE HOUSES: 

millers’ mutuals may insure, against fire or lightning. 270 


STORES: 

insurance on, against fire, etc.226, 

SUBORDINATE LODGES: 

certain societies having, deemed operating on lodge system. 

number, fraternal benefit society required to have . 

SUBPCENAS: 

to compel attendance of witnesses touching adjustment, etc., of fire losses. 

service of .. 

SUBROGATION: 

conditions concerning, in standard fire policy.,. 

SUBSCRIBERS: 

to inter-insurance or reciprocal contract to file declaration . 

to file instrument concerning service of process. 

to reciprocal insurance, filing of examination into commercial rating of. 

when to make up deficiency in net annual deposits. 

names of, not required in annual report . 

SUBSCRIPTIONS: 

to capital stock, when books opened to . 

if mutuals, to receive propositions, etc. 

SUB-STANDARD POLICIES: 

settlement at maturity, prohibition as to, not to apply to. 

SUFFICIENCY OF NOTICE: 

of claim, provisions relative to, in standard health and accident policy. 

SUIT: 

against foreign companies for delinquent taxes . 

per diem penalty, how collected . % . 

to recover assessments by mutual fire insurance company. 

on policy, conditions concerning, in standard fire policy . 

SUITS AT LAW: 

may be maintained against companies formed under act.‘. 

what not to be bar against ..... 


191 

201 

286 

287 

247 

305 

306 

307 

308 

309 

50 

50 

149 

159 

85 

86 
229 
247 

53 

53 





























































248 


INDEX. 


SUPPLEMENTAL CONTRACTS: Sections 

certain, exempt from certain health and accident provisions. 167 

approval of form, by commissioner of insurance. 167 

SUPREME GOVERNING BODY: 

certain societies having, deemed operating on lodge system . 391 

deemed having representative form of government. 192 

meetings of, of fraternal benefit society. 210 

SURCHARGES: 

by fire companies prohibited . 45 

SURETY AND BONDING COMPANIES: 

actions against, how commenced and tried . 367 

SURETY COMPANIES: 

purposes for which, may incorporate . 131 

exception, marine risks . 131 

business authorized . 339 

company requirements, statement of capital, etc., service of process . 341 

certificate of authority, when commissioner to issue . 342 

annual statement filed with commissioner, what to contain. 343 

a condition to renewal of annual certificate. 348 

payment of specific tax by, how computed . 348 

SURETY COMPANY BONDS: 

authorized . 339 

SURPLUS: 

participation in, life policy to contain provisions relative to. 148 

not required in non-participating policies . 148 

required of general mutual companies . 324 

SURPLUS EARNINGS: 

money advanced to general mutual companies repaid from . 328 

SURPLUS FUND: 

of fraternal beneficiary society, how held, invested, etc. 198 

provisions for assessments for, by mutual automobile insurance companies. 266 

SURPLUS MONEYS: 

in mortuary, emergency or reserve fund of casualty company. 181 

SURPLUS PROFITS: 

dividends of fire insurance companies to be paid from . 22 S 

reservation of unearned premiums, etc. 228 

SURPLUS SECURITIES: 

on deposit, when companies permitted to withdraw . 17 

SURRENDER: 

of policy, conditions concerning, in standard fire policy .. 247 

of benefit certificate under whole family protection when child reaches age 

for initiation .*. 351 

SURRENDER VALUE: 

life policy to contain provision for . 14S 

SURVEY: 

rating bureaus to make written, of risks . 38 

copies furnished owner and commissioner . 38 

of property for unauthorized fire company, penalty for . 245 

SURVEYOR: 

not to transact business under compact, of certain foreign companies . 80 

SUSPENSION: (See Revocation.) 

of adjuster’s license . 103 

of license of foreign fraternal benefit society. 220 

SUSPENSION OF AUTHORITY: 

penalty for violating certain provisions relative to agents and solicitors. 98 

review . 98 

SWORN STATEMENT: (See Annual Statements.) 

of foreign company’s business, requisite previous to admittance . 67 

penalty for false statements in, by fraternal benefit societies. 225 

annual, of reinsurance made by fire or marine insurance companies. 235 

by attorney for reciprocals concerning maximum single risks and subscribers 
assumption . 307 


T. 


TABLE: 

or statement showing credit of member of fraternal benefit society 
TABLE OF LOAN VALUES: 

life policy must contain provisions . 

TABLES OF RELIABLE EXPERIENCE: 

foreign fraternals not to write disability benefits except upon. 

interest assumption . 

valuation of fraternal benefit certificates by . 

TABULAR BASIS: 

valuation of fraternal benefit certificates on . 

deficiency, how met . 

TANKS: 

upon buildings, insurance against damage caused by. 

TAX: 

foreign companies, retaliatory provisions concerning . 

to pay annual, how computed, etc... 

in lieu of other taxation. 

certain failures not to relieve company. 

if delinquent, how collected . 

per diem penalty . 

on premiums, how computed . 


217 

148 

198 

198 

215 

217 

217 

320 

18 

83 

83 

84 

85 

86 
87 



























































INDEX. 


249 


TAX. Con. Sections 

on premium, of insurance of unauthorized companies. 128 

of general mutual companies . 329 

specific, paid by surety companies .! 348 

cancellation or return premiums . 348 

insurance companies required to pay. 419 

TAXABLE PREMIUMS: . 

_ a ,2* r£?£ eral mutual companies, what shall be . 329 

TAXATION: 

of foreign insurance companies . 83 

of fraternal benefit societies . !!..!!.!!!!!!!!!!!',!'.!!!!!! 224 

of general mutual insurance companies. 329 

of surety companies . . ... * ,. 343 

of corporate property, how computed 419 

TAXATION PREMIUMS: 

defined . 37 

TAX RECEIPTS: . 

_ . to forei § n companies by state treasurer. 87 

TAX STATEMENT: 

commissioner to deliver, of foreign companies to state treasurer. 84 

to company . 34 

TEAMS: . 


temporary absence of, covered by policy of farmers’ mutuals. 

in adjoining counties . 

TEMPORARY ABSENCE: 

of teams, wagons, etc., policies of farmers’ mutuals construed to cover 

in adjoining counties . 

TEMPORARY DISABILITY: 

fraternal benefit society may provide benefits for . 

TEMPORARY DISABILITY BENEFITS: 

TERM 6 ' 811 finternals, limitation on, writing members for .•. 


277 

2S1 

277 

281 

194 

198 


of corporate existence . 56 

renewal of, fee, etc. ...... i.....'. 57 

when to begin . 57 

of directors or trustees of casualty company . 180 

of life of preliminary certificate to fraternal benefit society . 201 

of license of fraternal benefit society, how renewed, etc. 207 

foreign societies .'. 208 

TERMINATION: 

of corporate existence, who to be trustees . 58 

dividends not to be declared in anticipation of. ,58 

TERM INSURANCES: 

loan provision in policy not required in._ . 148 

provision in policy for surrender value not required in . 148 

life policy may provide for, by inserting clause. 150 

reserve required . 150 

TERM OF OFFICE : 

of commissioner of insurance ... 1 

TERMS AND CONDITIONS: 

what evidence of, of agreement between fraternal benefit society and member 197 

contract of merger or transfer by fraternal benefit societies to set forth. 203 

TESTIMONY: (See Hearings.) 

no person excused from, in proceedings for violations . 124 

TEST OF SOLVENCY: 

of fraternal benefit society . 215 

THEFT: 

incorporation of companies to insure against. 131 

hazard not covered by standard fire policy . 247 

automobile insurance against .226, 259 

mutual companies . 263 

THRESHERS’ MUTUALS: 

incorporation of . 272 

liability of members of, to be stated in articles of association of. 279 

TIME: 

health and accident insurance takes effect, must be expressed in policy. 158 

TIME LIMITATIONS: (See Limitations.) 

of standard health and accident policy. 159 

TIME OF POLICY: (See Type.) 

life, to appear on face and back. 148 

TITLES TO REAL AND PERSONAL PROPERTY: 

incorporation of companies to examine, etc. 131 

TOMBSTONES: 

fraternal benefit society mav provide for, for deceased members. 194 

TORNADOES: 

incorporation of mutuals to insure against. 267 

TOWNSHIP BONDS: 

fraternal benefit society may invest funds in. 199 

TRANSCRIPTS: (See Certified Copies.) 

under seal, of insurance payments, etc., issued to soldiers, etc., without fee... 420 
TRANSFER: 

of risks of casualty company, how approved, effect of. 186 

to authorized company only. 187 

mergers or, by fraternal benefit societies, how effected, approved, etc. 203 

certificate of approval by supreme governing body. 203 

member may, to other plan of fraternal benefit society. 217 



























































250 


INDEX. 


TRANSFER OF STOCK: 

provisions concerning, of fire company during deficiency in assets, etc 

when court may restrain . 

TRANSPORTATION: 

insurance against risks of inland . 

insurance on automobiles against hazards of . 


Sections 

240 

374 


220 

220 


TREASURER: 

of casualty company, bonds required of. 

TRIALS: 

no persons excused from testifying at, in proceedings for violations. 

TRIENNIAL VALUATION: 

of fraternal benefit societies . 

TRIPLICATE COPIES: 

of articles of association, form used . 

disposition of . 

of amendments to articles, how disposed of .. 

of resolution renewing corporate existence, where filed. 

recorded at expense of company .... 

renewal fee . 

TRUST: 

advance payments to fraternal benefit society held in, during organization.... 
TRUST DEEDS: 

trust fund of casualty company may be deposited under. 

when proceedings under, voids standard fire policy. 

TRUSTEES: 

power of directors or, to make by-laws . 

officers to continue as, at expiration of corporate existence. 

under direction of court . 

under supervision of commissioner . 

qualifications required of .'. 

call of special meetings by . 

of life companies, salary, etc., of, how authorized, etc. 

pensions not to be granted to . 

or directors of casualty company, when and how chosen, term. 

for first year . 

names stated in articles of fraternal benefit society. 

of fire, marine, automobile, etc., companies, liability of, until capital paid in., 
liability of, of mutual fire company for loss sustained while filling up de¬ 
ficiency in assets, etc. 

when, etc., of farmers’ mutuals have no personal liability on contracts. 

TRUST FUND: (See Funds.) 

of casualty company, how formed, deposited or held . # .. 

TWISTING: 

misrepresentation and, prohibited, penalty .. 

TYPE: 

size used for printing health and accident policies . 

in advertisement to give prominence to fire company assuming risk. 

size used in printing Michigan standard policy . 


179 

124 

21(1 


48 

49 
52 
57 
57 

57 

201 

181 

247 

51 

58 
58 

58 

59 
00 

142 

142 

180 

180 

201 

230 


240 

268 


181 

110 

158 

236 

248 


U. • 

UMPIRE: 

selection of, provision for, under standard fire policy . 247 

UNAUTHORIZED BUSINESS: 

life and casualty, prohibited, penalty. 130 

UNAUTHORIZED COMPANIES : 

fire, license required to procure policies of . 100 

proceedings when indemnity desired in, tax paid on premium. 128 

reinsurance in, by fire and marine companies, prohibited. 235 

fire, contracts by, void .. 243 

penalty for issuing policies .. 244 

UNAUTHORIZED SOLICITATION: 

penalty for, of membership in fraternal benefit society .. 225 

UNDERTAKING : 

filed by foreign fire, fire arid marine, or marine and inland companies. 77 

UNDERWRITERS: 

word “company” held to include, in chapter relative to fire contracts. 246 

UNDERWRITERS’ CORPS: 

blanket policies issued to, exempted from certain health and accident provisions 167 
UNEARNED PREMIUMS: 

reservation of, from dividends of fire insurance companies. 228 

UNFAIR DISCRIMINATION: 

in classification of premiums, etc., by employer’s liability companies. 300 

UNIFORM DEVIATION: 

fire companies to file, with commissioner, approval, etc. 41 

from classifications, etc., of premiums, etc., by employer’s liability company.. 301 

UNINSURABLE PROPERTY: 

provisions concerning, in standard fire policy . 247 

UNITED AMERICAN MECHANICS: 

junior order, exempted from certain provisions governing fraternal benefit 

soci 6 ti 6 s , . . . ... • 223 

UNITED STATES MANAGER :’ ’ 

requisition of, for agent’s license ... 89 

UNOCCUPANCY: 

of building, conditions concerning, in standard fire policy . 247 

UNPAID INTEREST: 

reserved from dividends of fire insurance companies... 228 






















































INDEX. 


251 


USE AND OCCUPANCY INSURANCE: 

general mutual companies may do, hazards covered 


Sections 

320 


V. 


VACANCIES: 

articles to state manner of filling all . 

VACANCY IN OFFICE : . 

of commissioner of insurance, how filled ... 

VALUATION: . 

of bonds and securities . 

and reserve required of foreign co-operative life companies . 

of benefit certificates, certain fraternal benefit societies exempt from provisions 

requiring- . 

VALUATION OF POLICIES: 

foreign companies, retaliatory provisions concerning. 

VALUATION REPORT: . 


of fraternal benefit society, mailed annually to beneficiary members 

filed with commissioner, when made, what to show, etc. 

first report . 

mortality and interest basis to be set forth......".."........". 

VESSELS: 


insurance upon, against risks of inland or ocean navigation, etc. 

VILLAGE BONDS: 

fraternal benefit society may invest funds in . 

VILLAGES: 

risks that farmers’ mutuals may insure in certain... 

VOLUNTARY ASSOCIATION : 

fraternal benefit, what constitutes agreement between, and members 

certified copies of, how received in evidence . 

may incorporate under fraternal benefit provisions. 

VOTE: 

members of casualty company entitled to. 

members of mutual companies entitled to . 

VOUCHER: 

disbursements by domestic life companies to be by . 

affidavit if voucher cannot be obtained . 


W. 

WAGONS: 

temporarily absent, covered by policy of farmers’ mutuals ... 

in adjoining counties .. 

WAIVER: 

what not to operate as, of rights of insurer in defense of claim on health and 

accident policy ... 

of provisions of laws or constitution of fraternal benefit society. 

conditions concerning, in standard fire policy ... 

WAREHOUSES: 

mercantile mutuals may insure, against fire or lightning . 

millers’ mutuals may insure, against fire or lightning . 

WARES: 

saje, etc., of, by fire, marine, automobile, etc., companies . 

WATER: 

insurance against . 

insurance against, by sprinkler breakage, etc., by general mutual company.... 
WATER PIPES: 

incorporation of companies to insure against damage done by . 

insurance against breakage of, by general mutual company. 

WHOLE FAMILY PROTECTION: 

fraternal benefit societies on lodge plan may provide for. 

WIFE: 

husband may insure life for benefit of . 

with assent, may insure life of husband, etc. 

extent of exemption from claims of creditors, etc. 

death of wife before husband . 

minor may insure for benefit of, etc. 

may be beneficiary of fraternal benefit member. 

WILL AND TESTAMENT: 

wife in case of death before husband, may dispose of insurance on life of 

husband by . 

WIND: 

insurance against . 

WINDING UP OF AFFAIRS: (See Dissolution.) 

of fraternal benefit society, notice given . 

WINDSTORMS: 

incorporation of mutuals to insure against . 

WITHDRAWAL: 

privileges of members of employer’s liability company, notice, etc. 

WITHDRAWAL EQUITIES: 

when fraternal benefit societies may grant, to members . 

limit in value .. 

WITNESSES: (See Examinations, Hearings.) 

compelling attendance of, touching adjustment or arbitration of losses. 

WORKMEN’S COMPENSATION: 

policy, exempted from certain health and accident provisions. 

liability insurance against, general mutual companies may do. 


47 


21 

82 


223 


IS 


215 

215 

215 

215 

220 


199 


208 


197 

197 

202 


182 

323 


141 

141 


2 0 
281 


103 

212 

217 

209 

270 

233 

220 

320 

131 

320 

349 

109 

170 

170 

171 

172 
195 


171 

220 

218 

200 

29S 

194 

194 

280 

107 

320 























































252 


INDEX. 


WORKMEN’S COMPENSATION INSURANCE: 

certificate of authority to transact . 

paid up capital required, securities deposited . 

annual statement, reserves, liabilities, impairment . 

WORKMEN’S COMPENSATION INSURANCE COMPANIES: 

foreign mutuals, tax levied against . 

licensing of adjusters of . . 

authority of, to exchange reciprocal or inter-insurance contracts ... 
WORKMEN’S COMPENSATION LAW: . _ 

persons, etc., who have become subject to, may incorporate mutual 
company . 


Sections 

135 

138 

137 


83 

102-4 

303 


insurance 
. 290 
















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